It is clear from the quotation that the Commission was mindful of the fact that for it to have a valid initiation of a complaint, it must have reasonable grounds to suspect that Mondi was engaged in prohibited practices as envisaged in sections 4 and 8. At the risk of prolonging this judgment, I find it necessary to quote what are alleged to be the contraventions: The information submitted to PAMSA relates, inter alia to each supplier's capacity, total national production volumes, raw material consumption and trade data.
Implications[ edit ] Rational expectations theories were developed in response to perceived flaws in theories based on adaptive expectations. Under adaptive expectations, expectations of the future value of an economic variable are based on past values.
For example, people would be assumed to predict inflation by looking at inflation last year and in previous years. Under adaptive expectations, if the economy suffers from constantly rising inflation rates perhaps due to government policiespeople would be assumed to always underestimate inflation.
Many economists have regarded this as unrealistic, believing that rational individuals would sooner or later realize the trend and take it into account in forming their expectations. The rational expectations hypothesis has been used to support some strong conclusions about economic policymaking.
An example is the policy ineffectiveness proposition developed by Thomas Sargent and Neil Wallace. If the Federal Reserve attempts to lower unemployment through expansionary monetary policy economic agents will anticipate the effects of the change of policy and raise their expectations of future inflation accordingly.
This in turn will counteract the expansionary effect of the increased money supply. All that the government can do is raise the inflation rate, not employment.
This is a distinctly New Classical outcome. During the s rational expectations appeared to have made previous macroeconomic theory largely obsolete, which culminated with the Lucas critique. However, rational expectations theory has been widely adopted as a modelling assumption even outside of New Classical macroeconomics  thanks to the work of New Keynesians such as Stanley Fischer.
If agents do not or cannot form rational expectations or if prices are not completely flexible, discretional and completely anticipated economic policy actions can trigger real changes. In order to be able to compute expected values, individuals must know the true economic model, its parameters, and the nature of the stochastic processes that govern its evolution.
If these extreme assumptions are violated, individuals simply cannot form rational expectations  Testing empirically for rational expectations[ edit ] This section needs additional citations for verification.
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May Suppose we have data on inflationary expectationssuch as that from the Michigan survey . We can test whether these expectations are rational by regressing the actual realized inflation rate I on the prior expectation of it, X, at some specified lead time k:"Frigideiro!
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