"I was reminded of how much I had misjudged the potential the profession would see in the time series rational expectations models. When I, as a graduate student at the Massachusetts Institute of Technology around 1970 did some work on the econometrics of rational expectations time series models, I felt rather apologetic about the extreme assumptions in the models. I did not expect others to regard them as anything more than a passing gimmick. Richard Sutch had just written in his MIT doctoral dissertation an exposition of the coefficient restrictions implied for time series representations of long-term and short-term interest rates, but he never bothered to publish this work. I remember conversations with him and others about rational expectations models, and I did not come away thinking they were the wave of the future."

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