Rational expectations theory therefore implies that repeated counter-cyclical policies will be anticipated and are unlikely to affect real GDP or unemployment.

FORBES: Thomas Sargent, Rational Expectations And The Keynesian Consensus

Whereas Robert Lucas (Nobel Prize 1995) provided the theoretical foundations of rational expectations theory, Thomas Sargent tested rational expectations against real-world data.

FORBES: Thomas Sargent, Rational Expectations And The Keynesian Consensus

Rational expectations theory came up with an explanation of stagflation.

FORBES: Thomas Sargent, Rational Expectations And The Keynesian Consensus

An aside on the theory of rational expectations, for instance, shows that he has not bothered to check an elementary textbook on the subject.

ECONOMIST: PPE of global capitalism