Endogenous-uncertainty

Mordecai Kurz offers one of the most important contributions to recent macroeconomics. The book provides a genuine research highway towards the building up of a theory of expectations with both rigour and practical usefulness. The idea or "paradigm" of Rational Beliefs is present in all the papers of this volume. They combine rigourous modelling with insigthful conclusions and provocative questions that look more ambitious than the Rational Expectations research program.This book highlights how important are agents' beliefs and their reactions to observed contradictions between observed values and ex-ante estimates of observable economic variables. With no doubt, this volume is an important tool for academic and non-academic economists. It provides sophisticatesd modelling with insightful interrogants and conclusions that invite to re-think the usefulness of mainstream macroeconomic theory. Its reading is a "must" for every economist or social scientist focused on the analysis of the limitations of human knowledge for decision-making in dynamic and changing environments.