Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/242939
Authors: 
Boianovsky, Mauro
Year of Publication: 
2021
Series/Report no.: 
CHOPE Working Paper No. 2021-17
Publisher: 
Duke University, Center for the History of Political Economy (CHOPE), Durham, NC
Abstract: 
Robert Lucas' 1972 article on the neutrality of money represented the first effective challenge to Samuelson's neoclassical synthesis methodological separation between static microeconomic optimization and macroeconomic dynamics. Lucas rejected disequilibrium price dynamics, as expressed by the Walrasian t√Ętonnement and auctioneer mechanisms. Lucas' new treatment of equilibrium as an expectational concept, determined by the rational behaviour of information processing agents, was not restricted to market clearing competitive economies. Lucas' effort to compare alternative rational expectations models of price stickiness (including his 1972 original formulation) led him to stress the notion of 'descriptive realism' of the models' main assumptions, which played an important role in his original discussion of model robustness.
Subjects: 
Robert Lucas
economic dynamics
expectational equilibrium
price rigidity
descriptive realism
JEL: 
B22
B41
E32
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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