Category Archives: Lucas

The Biggest Crock in All of Economics

This is the damage which Robert Lucas has done to macroeconomics: Let’s deal with some of Mark’s specific complaints about what he thinks practicing macroeconomists have been up to: Macroeconomic models have not fared well in recent years – the … Continue reading

Posted in Lucas | 5 Comments

Frydman & Goldberg on Robert Lucas & F. A. Hayek

From Roman Frydman and Michael Goldberg’s new book Beyond Rational Markets: Asset Price Swings, Risk, and the Role of the State: The problem that haunts the Rational Expectations Hypothesis is the same one that doomed socialist planning: no fully predetermined … Continue reading

Posted in 1945, Frydman, Knowledge Problem, Limits to Knowledge, Lucas, Macroeconomics, Rational Expectations | Comments Off

macro: Willem Buiter on the Uselessness of “State of the Art” Macroeconomics

When Robert Lucas created modern “state of the art” macroeconomics, time and time again Lucas explained that he was attempting to recapture the pre-Keynesian “equilibrium” macroeconomics pioneered by Friedrich Hayek. But as any Hayekian will tell you (see the work … Continue reading

Posted in Boom & Bust, Capital Theory, Lucas | 2 Comments