> Economic models, however, are themselves part of the economy. The ideas they are built on and their predictions become part of wider knowledge and influence t

> Economic models, however, are themselves part of the economy. The ideas they are built on and their predictions become part of wider knowledge and influence the very thing the model is trying to predict or explain, possibly reinforcing or weakening certain behaviours. Which is the very problem "rational expectations" modeling [0] is trying to avoid. Rational expectations models don't 'know' anything (systematic) that the actors in it don't. [0] https://en.wikipedia.org/wiki/Rational_expectations https://en.wikipedia.org/wiki/Rational_expectations