Keynesian economists challenge Lucas Critique, reshaping macroeconomic policy evaluation.
The article discusses how economists reacted to Robert Lucas's idea that traditional ways of evaluating economic policies needed to change. Some economists disagreed with Lucas's solution to the problem, proposing different ways to study how people form expectations about the economy. They also questioned whether Lucas's idea could explain the high unemployment and inflation of the 1970s. The researchers argue that the real reasons for these issues lie elsewhere, not just in Lucas's theory.