Diamond September near-rationality near-rationality “near-rationality” near-rationality near-rationality Knight t εt t xt xt=f (εt, εt , εt , εt ,....), t xt xt=h(εt, εt , εt , εt ,..., εt , εt , εt ,...) εt , εt , εt ,... t t εt εt , εt ,... xt=h(εt, εt , εt , εt ,..., Eεt , Eεt , Eεt ,...), xt=Eh(εt, xt , xt , xt ,..., xt , xt , xt ,...), E Journal of Economic Dy- namics and Controls, Review of