🌿Rational Expectations Model | Structural Reduced Form vs Trial Solution🌿
Автор: 🌿Mind Maths with Amina🌿
Загружено: 2025-12-23
Просмотров: 9
In this video, I solve a full Rational Expectations exam question using two standard methods taught at the graduate level:
Method 1: Structural Reduced-Form Method
Method 2: Trial Solution (Conjecture–Verify) Method
You’ll see:
How to reduce a structural system using expectations
How and why the trial solution works
Why real variables respond only to surprises
Why anticipated policy affects prices but not output
This video is especially useful for:
MS Economics students
Advanced undergraduates
Mathematical Methods / Macro exam preparation
📌 Topics covered:
Lucas supply curve
Rational expectations
Structural reduced forms
Trial solution method
Anticipated vs unanticipated policy
Real vs nominal variables
If you’ve ever wondered why two different methods give the same answer, this video will make it completely clear.
#RationalExpectations
#StructuralReducedForm
#TrialSolutionMethod
#Macroeconomics
#LucasModel
#DynamicMacroeconomics
#MathematicalEconomics
#GraduateEconomics
#MS_Economics
#EconomicsExam
#MindMaths
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