Anticipations, Business Planning, and the Cycle

Abstract

I. Business plans based on anticipations, 273.— II. The optimum plan under subjective certainty, 277; its revision when anticipations change, 281; generalisation for monopolistic competition, 283. — III. Uncertainty leads to flexibility in planning, 285; capital-market uncertainty leads to “liquidity,” 290. — IV. Breakdown of anticipations helps explain business cycles, 291.