Chapters in this book

1. Frontmatter i
2. Contents vii
3. List of Tables xi
4. List of Figures xv
5. Acknowledgments xxiii
6. Glossary of Mathematical Symbols in Order of Appearance xli
7. CHAPTER ONE. Expectations Before the Rational Expectations Revolution 3
8. CHAPTER TWO. Rational Expectations Are Endogenous to and Abide by ‘‘the’’ Model 17
9. Introduction 43
10. CHAPTER THREE. Macrofoundations of Monetary Dynamics 47
11. CHAPTER FOUR. Microfoundations of Monetary Dynamics: The HRL Formulation of the Demand for Money 67
12. CHAPTER FIVE. The Fundamental Equation of Monetary Dynamics 95
13. CHAPTER SIX. Joint Testing of the HRL Formulation of the Demand for Money and of the Fundamental Equation of Monetary Dynamics 113
14. CHAPTER SEVEN. Allais’s HRL Formulation: Illustration of Its Dynamic Properties by an Example of Hyperinflation (Zimbabwe 2000--2008) 131
15. CHAPTER EIGHT. The HRL Formulation and Nominal Interest Rates 153
16. CHAPTER NINE. Perceived Returns and the Modeling of Financial Behavior 183
17. CHAPTER TEN. Downside Potential Under Risk: The Allais Paradox and Its Conflicting Interpretations 201
18. CHAPTER ELEVEN. Downside Potential Under Uncertainty: The Perceived Risk of Loss 241
19. CHAPTER TWELVE. Conclusion 265
20. APPENDIX A. How to Compute Z_n and z_n 271
21. APPENDIX B. Nominal Interest Rates and the Perceived Rate of Nominal Growth 275
22. APPENDIX C. Proofs 277
23. APPENDIX D. Comparison Between the Kalman Filter and Allais’s HRL Algorithm 327
24. APPENDIX E. A Note on the Theory of Intertemporal Choice 331
25. APPENDIX F. Allais’s Cardinal Utility Function 343
26. Notes 347
27. Bibliography 367
28. Index 375
29. Preface xix
30. Introduction xxxi