John Muth, American economist and academic (b. 1930)
John Fraser Muth (; September 27, 1930 – October 23, 2005) was an American economist. He is "the father of the rational expectations revolution in economics", primarily due to his article "Rational Expectations and the Theory of Price Movements" from 1961.
Muth earned his Ph.D. in mathematical economics from Carnegie Mellon University, and was in 1954 the first recipient of the Alexander Henderson Award. He was affiliated with Carnegie Mellon as a research associate from 1956 until 1959, as an assistant professor from 1959 to 1962, and as an associate professor without tenure from 1962 to 1964. He was a full professor at Michigan State University from 1964 to 1969 and a full professor at Indiana University from 1969 until his retirement in 1994.
Muth asserted that expectations "are essentially the same as the predictions of the relevant economic theory." Although he formulated the rational expectations principle in the context of microeconomics it has subsequently become associated with macroeconomics and the work of Robert Lucas, Jr., Finn E. Kydland, Edward C. Prescott, Neil Wallace, Thomas J. Sargent, and others.
2005Oct, 23
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Events on 2005
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Pope Benedict XVI
Cardinal Joseph Ratzinger is inaugurated as the 265th Pope of the Roman Catholic Church taking the name Pope Benedict XVI. - 25Apr
European Union
Bulgaria and Romania sign accession treaties to join the European Union. - 17Aug
Israeli disengagement from Gaza
The first forced evacuation of settlers, as part of Israeli disengagement from Gaza, starts. - 24Oct
Effects of Hurricane Wilma in Florida
Hurricane Wilma makes landfall in Florida resulting in 35 direct 26 indirect fatalities and causing $20.6B USD in damage. - 30Oct
Bombing of Dresden in World War II
The rebuilt Dresden Frauenkirche (destroyed in the firebombing of Dresden during World War II) is reconsecrated after a thirteen-year rebuilding project.