rational expectations

plural noun

Definition of rational expectations

: an economic theory holding that investors use all available information about the economy and economic policy in making financial decisions and that they will always act in their best interest

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Other Words from rational expectations

rational expectationist \ -​ˌekˌspekˈtāshənėst \ noun

First Known Use of rational expectations

1960, in the meaning defined above

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The first known use of rational expectations was in 1960

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Cite this Entry

“Rational expectations.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/rational%20expectations. Accessed 31 Oct. 2020.

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