KnowraLucas critiqueLinked fromLinked fromThe 14 pages that link to Lucas critique, each with the reason it gives.All 14Broader topic 2Related 8Compared with 4Rational expectationsRelated: It shows why forecasts must account for how policy changes expectations and decisions.Real business cycle theoryRelated: Its demand for models grounded in optimizing behavior shaped the research environment in which the theory arose.Adaptive expectationsRelated: It exposed a weakness in policy models that treat adaptive expectation rules as fixed.Edward C. PrescottRelated: Prescott’s equilibrium models share the critique’s emphasis on decisions responding to policy.Finn E. KydlandRelated: It shares the premise that people adjust behavior when policy rules change.Paul RomerRelated: Romer’s models likewise made agents’ choices central to outcomes previously treated as external.Thomas J. SargentRelated: It motivated Sargent’s emphasis on models whose behavioral relationships respond to policy.History of macroeconomic thoughtRelated: It exposed a methodological weakness in forecasting models used by earlier policy regimes.