“Expectations and the Neutrality of Money”
E455402
“Expectations and the Neutrality of Money” is a seminal economic paper by Robert Lucas Jr. that helped launch the rational expectations revolution by analyzing how anticipated monetary policy affects real economic activity.
Observed surface forms (1)
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| Expectations and the Neutrality of Money | 0 |
Statements (45)
| Predicate | Object |
|---|---|
| instanceOf |
economic paper
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scholarly article ⓘ |
| academicDiscipline | economics ⓘ |
| addresses |
conditions under which money is neutral
ⓘ
role of information and expectations in macroeconomic dynamics ⓘ |
| author |
Robert E. Lucas Jr.
NERFINISHED
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Robert Lucas Jr. NERFINISHED ⓘ |
| claim |
agents use all available information to form expectations about monetary policy
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only unanticipated monetary shocks can have real effects in the short run ⓘ policy rules are incorporated into private sector expectations ⓘ systematic and anticipated monetary policy is neutral with respect to real variables in the long run ⓘ |
| contribution |
analyzed how anticipated monetary policy affects real economic activity
ⓘ
challenged traditional Keynesian views on systematic monetary policy ⓘ formalized the role of expectations in determining the real effects of money ⓘ helped launch the rational expectations revolution in macroeconomics ⓘ |
| coreConcept |
distinction between anticipated and unanticipated monetary changes
ⓘ
equilibrium with rational expectations ⓘ information structure faced by economic agents ⓘ neutrality of money in the presence of rational expectations ⓘ |
| field |
expectations theory
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macroeconomics ⓘ monetary economics ⓘ |
| implication |
discretionary monetary policy is less effective when agents have rational expectations
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empirical evaluation of policy must account for changes in expectations ⓘ |
| influenced |
modern macroeconomic modeling of monetary policy
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new classical macroeconomics ⓘ policy ineffectiveness propositions ⓘ |
| influencedBy |
Keynesian macroeconomic models
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classical neutrality of money concept ⓘ earlier work on expectations in economics ⓘ |
| language | English ⓘ |
| mainTopic |
Lucas critique
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anticipated monetary policy ⓘ monetary neutrality ⓘ rational expectations ⓘ real effects of monetary policy ⓘ |
| notableFor |
being a seminal paper in the rational expectations revolution
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shaping modern views on the limits of systematic monetary policy ⓘ |
| relatedTo |
policy ineffectiveness debate
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time inconsistency of optimal policy literature ⓘ “Econometric Policy Evaluation: A Critique” NERFINISHED ⓘ |
| theoreticalApproach |
dynamic general equilibrium framework
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rational expectations hypothesis ⓘ |
| usedIn |
graduate macroeconomics courses
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monetary economics curricula ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.