Robert E. Lucas Jr.

Robert E. Lucas Jr. is an influential American economist known for his work on economic theory and policy. He is a key figure behind the concept of "rational expectations," which suggests that individuals and businesses use all available information to make economic decisions. This idea challenges traditional models by implying that people anticipate the effects of government policies, making those policies less effective. Lucas won the Nobel Prize in Economics in 1995 for his contributions to macroeconomic analysis and understanding of how expectations impact economic dynamics, significantly shaping modern economic thought and policy.