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

Love words?

You must — there are over 200,000 words in our free online dictionary, but you are looking for one that’s only in the Merriam-Webster Unabridged Dictionary.

Start your free trial today and get unlimited access to America's largest dictionary, with:

  • More than 250,000 words that aren't in our free dictionary
  • Expanded definitions, etymologies, and usage notes
  • Advanced search features
  • Ad free!

Other Words from rational expectations

rational expectationist \ -​ˌekˌspekˈtāshənėst \ noun

First Known Use of rational expectations

1960, in the meaning defined above

Keep scrolling for more

Learn More about rational expectations

Share rational expectations

Statistics for rational expectations

Look-up Popularity

Time Traveler for rational expectations

The first known use of rational expectations was in 1960

See more words from the same year

Comments on rational expectations

What made you want to look up rational expectations? Please tell us where you read or heard it (including the quote, if possible).

WORD OF THE DAY

obstinately defiant of authority

Get Word of the Day daily email!

Test Your Vocabulary

Autumn Words of the Day 2018

  • a-top-down-image-of-road-through-an-autumn-forest
  • Which is a synonym of fugacious?
True or False

Test your knowledge - and maybe learn something along the way.

TAKE THE QUIZ
SCRABBLE® Sprint

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!