The Development Of Expected Theory In Modern Western Economics

Expected economic is used in the real life everywhere, and the range of expected is used more and more extensive, the use of depth is also expanding. In economics, the position of expected also becomes more and more important, every schools in modern Western economics are all include the expected theory, and using the expected theory to explain and solve the existing economic problems.This article is divided into seven parts to describe the expected theory of modern Western economics, the first part is the introduction that is a brief summary of the background,the purpose,the status and innovation. The second part is the expectations theory of Swedish School, the representation of the expectations theory of Swedish Schoolis expected to Wicksell and Myrdal, their representatives is the cumulative processing theory and the pre-post analysing method. The third part is the expected theory of Marshall, Marshall's expected theory are in his demand theory,supply theory and the equilibrium price theory, Marshall describing the expected theory is mainly from the psychological factors. The fourth part is the expected theory of Keynes, Keynes describing the expected theory is mainly from the effective demand theory and the three psychological laws, Keynes's expected theory is also psychological expectation theory is expected, which is the same as Marshall's expected theory, but their policy proposals are diametrically the contrary.The seventh part is the expected theory of the new Keynes, which is mainly describing the expected theory from long-term price contracts,the theory of staggered price adjustment, the new Keynes borrows the conception of rational expections from the rational expections school, and evolving into restrictive rational expectations, the restrictive rational expectations is more practical than the rational expectations, and it is an adancing of expected theory.This article only discusses the expected theory in modern Western economics, but the theory does not mean that the development of expected theory stalled. Theory will develops with the developing and changing actual economic life, the development of expected theory is the same. With the rapidly development of economic, the expected theory will also develop towards more advanced and more closing to the actual life.