Robert Lucas

Robert Lucas is an influential American economist known for his work in macroeconomics and the development of the "Lucas Critique." He argued that traditional economic models could be misleading because they often ignore how people's expectations change in response to policy changes. Lucas introduced the idea of "rational expectations," suggesting that individuals use all available information to make predictions about the future. This fundamentally shifted how economists understand economic policy and forecasting, asserting that effective policy must consider people's behavior and expectations. Lucas was awarded the Nobel Prize in Economic Sciences in 1995 for his contributions to the field.