"Leonard Rapping’s and my contribution to that volume was a partial equilibrium model of the labor market only. The idea was that agents had to base production and employment decisions on partial information and that this could lead them to decisions that to an omniscient observer would appear pathological. The new elements in my paper, relative to Phelps’s outline, were its mathematical explicitness and its use of rational expectations. The example developed in the paper made it clear that the possibility of using monetary policy to stimulate production would depend on the information people have and could not be reliably described by a stable Phillips curve. But attempts to construct quantitative models of recessions based on this feature alone have not succeeded."
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Robert E. Lucas Jr. Introduction in Collected Papers on Monetary Theory.
https://en.wikiquote.org/wiki/Rational_expectations
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Rational expectations
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