Economic Expectations

Rational Expectations vs Adaptive Expectations

How do the media play into this?

If one group call them "Fox News Watchers" are being bombarded with images of imminent economic doom while another group, call them "MSNBC Watchers", are receiving constant economic cheerleading, the groups would have radically different expectations. I guess one would expect this to balance across the whole population but it may not as one media source may have more power. It seems to me carpet bombing of distorted information by the mass media may render Rational Expectations meaningless.

Expectations are whatever the most powerful media player says they are regardless of economic conditions or policy.