THE IMPACT OF THE LUCAS CRITIQUE ON MACROECONOMICS: A BRAIDING OF ECONOMIC AND CYBERNETIC INSIGHTS

Author:

Moscardini A. O.ORCID, ,Lawler K.ORCID,Vlasova T.ORCID, ,

Abstract

The Lucas Critique has attracted discussion since it was published in 1976. This article evaluates its impact on the epistemology of Macroeconomics. It probes deeper than an analysis on Rational Expectations into a debate on theory and practice in macroeconomics. The originality of the research concerns the convergence/divergence between the Keynes and Lucas critiques of econometrics/econometric policy. The paper updates and refines Lucas’s contribution to econometric policy evaluation framed by the Keynes – Tinbergen – Friedman – Lucas literature. The exegesis uses the expertise of the authors (one a cybernetician and one a macroeconomist) to provide a novel and stimulating platform for further debate.

Publisher

Taras Shevchenko National University of Kyiv

Subject

General Medicine

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