Lucas was a pioneer of a 1970s economic revolution, building on the work of Milton Friedman’s monetarist school that blamed monetary mismanagement for bad inflations and downturns. Lucas influenced worldwide economic policy-making by developing the rational expectations theory, which posits that people make decisions based on predictions about the future using the information available to them.
Guarantee he’ll try to say it’s about people having all the informaiton and being rational calculating machines.
“He retrospectively defined his insights as “a scepticism about the efficacy of government programmes” to combat public policy problems.”
Seems reasonbale, no?
I must be ignerent – to me, Lucas is famous for dodgy vehicle electrics…
Dave @ 10.05 I must be ignerent too. I thought Lucas was famous for demonstrating to the country the insanity that electing green MP’s would bring.
You’re both right.
“reasonbale”: is that the chap who played on the wing for Real Madrid before deciding he preferred golf?