"The biggest step I ever made was, I guess, the "Expectations and the Neutrality of Money" paper in 1972, in the sense that this paper was for me and, (I think) for the profession, a big step from what other people had done. The economic logic of it was very much built on Phelps — the parable of an economy of islands — which wasn't my idea at all. But what Phelps got me thinking about was a general equilibrium model in which monetary shocks could induce people to work harder because of lack of information. It was a technically cool paper, it was hard to write, and it put me on the map as a theoretical economist."
Quote Details
Added by wikiquote-import-bot
Unverified quote
0 likes
Original Language: English
Available Languages (1)
Sources
Robert E. Lucas, in Ian P. King (2008) Interview: A conversation with Robert E. Lucas, Jr., nobel laureate in economics, 1995, New Zealand Economic Papers, 42:1
https://en.wikiquote.org/wiki/Lucas_islands_model
Revision History
No revisions have been submitted for this quote.
Categories
Lucas islands model
1 quote on TrueQuotesView all quotes by Lucas islands model →
Related Quotes
"In contrast to Smith’s incomplete modeling, his follower, David Ricardo, provides a coherent setting— basically, the …"
"These ideas have implications not only for theoretical and econometric practices but also for the ways in which polic…"
"The different classes of models have a lot to learn from each other, but the goal of full integration has proven coun…"
"Policy models, aimed at analyzing actual macroeconomic policy issues. Models in this class should fit the main charac…"
"The IS-LM model appears to describe well the behavior of the economy in the short run. In particular, the effects of …"
"Yes, IS-LM simplifies things a lot, and can’t be taken as the final word. But it has done what good economic models a…"
"An important addition to this classical doctrine of factor-price equalisation has been supplied by Professor Bertil O…"
"The construction of an economic model, or of any model or theory for that matter (or the writing of a novel, a short …"
"The long term solution to the financial crisis is to move beyond the ‘growth at all costs’ economic model to a model …"
"Unless the fundamental categories of economics such as ‘property’ were to be redefined in a radically personal way th…"