4.3.1.0 INTRODUCTION
The modelling of expectations using time series data is often an important and difficult task of the applied economist. This is especially true in macroeconomics, in that investment, saving, and the demand for assets are all sensitive to expectations about the future. Unfortunately, there is no satisfactory way of measuring expectations directly for macroeconomic purposes. Consequently, macroeconomic models tend not to give particularly accurate forecasts, and this makes economic management difficult.
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