John F. Muth

John F. Muth was an influential American economist best known for introducing the concept of Rational Expectations in the 1960s. This theory suggests that individuals and businesses make decisions based on their expectations of the future, using all available information. Muth argued that people aren't just reactive; they anticipate future economic conditions, which can influence market behavior and economic policy outcomes. His ideas profoundly impacted macroeconomics, leading to new approaches in economic modeling and analysis, and laid the groundwork for further research on how expectations shape economic reality.