There is no such thing as rational expectations. There is wishful thinking, or panic.

Rolf Englund, many years ago

(probably in 1997)

https://www.internetional.se/nosuchthing.htm


With the assumption of rational expectations, Lucas felt he had “eliminated the main intellectual basis” for fiscal and monetary fine-tuning of demand.

 After all, cashiers could not systematically fool ride operators. “Keynesian economics is dead,” he reported in 1979. 

That report proved exaggerated.

The Economist 18 May 2023

Five years before the financial meltdown of 2008, Robert Lucas famously declared that “the central problem of depression-prevention has been solved . . . and it has been for many decades”.

https://englundmacro.blogspot.com/2023/05/robert-lucas-was-giant-of.html


Tillbaka till Rolfs länktips 3 april 2025

https://englundmacro.blogspot.com/2025/04/rolfs-lanktips-3-april-2025.html






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