Robert Lucas (Economist)

Robert Lucas is an influential American economist known for his work in macroeconomics and his development of the "rational expectations" theory. This theory suggests that individuals and businesses make decisions based on their expectations of the future, which can make traditional economic policies less effective. Lucas argues that because people anticipate the effects of policy changes, such as government spending, they may adjust their behavior in ways that counteract those policies. His ideas have significantly shaped modern economic thinking and influenced how economists analyze economic cycles, inflation, and growth. He was awarded the Nobel Prize in Economics in 1995.