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We call attention to the class of models that serve as the foundation for the rational expectations hypothesis (REH). Models in this class rule out completely any structural change that cannot be fully anticipated with a probabilistic or other quantitative rule. REH models are abstractions of rational decision-making, but only in a hypothetical world in which participants can fully anticipate when and how they might revise their understanding of the process driving outcomes.

This research project proposes linking emission fees to actual temperatures, thereby helping to break the policy stalemate and reach agreement on an effective policy.

Unveiling the U.S. Prison System

Is America facing a retirement crisis?

Inflation, the euro crisis – for years there has been one worry hype after another. Yet fear frequently turns out to be wrong. We need a committee of wise men in charge of dealing with the real risks.

There is a banking crisis. Again. Banking regulators were asleep at the switch. Again.

The Healthcare Policy Podcast

INET’s Research Director Thomas Ferguson talks to Rob Johnson about the many ways in which money corrupts our politics, contributes to ever-greater inequality, and what can be done about it

Margaret Heffernan, a writer and former CEO, talks to Rob about her latest book, Uncharted: How to Map the Future Together, on the art of thinking about the future in the context of uncertainty

MIT Sloan Assistant Professor Emil Verner discusses his research into credit markets, and the role of economics in the rise of populism.

National security expert Sarah Chayes discusses her new book, On Corruption in America: and What Is at Stake. Chayes explores how corruption in U.S. state and society furthers and deepens inequality.

Financial Times economics commentator Martin Wolf discusses how the loss of faith and trust in government and in experts leads many to believe in anything, resulting in disunity and polarization

Renowned Harvard University professor of philosophy Michael Sandel talks about his new book and how centrist Democrat insensitivity to inequality and the ideology of meritocracy have contributed to right-wing populism, polarization, and distrust in government.

Winnie Byanyima shows how we all suffer when corporations evade taxes

Considerable academic and public attention has been drawn to the pulling away of the very rich—the so-called “one percent” whose gains have far outpaced those of everyone else (Piketty 2014). But the debate has reached well beyond the very top, especially in the United States.Indeed, the hollowing out of the middle class, continuing stagnation of wages, and new evidence on the lack of upward mobility across generations all strike at the very heart of the American ideal.