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The Lucas Critique and Keynes Response.Considering the History of Macroeconomics

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  • Elke Muchlinski

    (Freie Universität Berlin)

Abstract

Considering the history of macroeconomics it is surprising that Tinbergens theory of policy is identified with so-called Keynesian economics by Lucas and Lucasians. Keynesian macropolicy is accused of neglecting the role of expectations and the effects of any changes of institutions. Due to textual evidence this paper explains that both the disregard of expectations and the institutional evolutionary process can not be addressed to Keynes's analysis.

Suggested Citation

  • Elke Muchlinski, 2005. "The Lucas Critique and Keynes Response.Considering the History of Macroeconomics," Macroeconomics 0503019, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:0503019
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/mac/papers/0503/0503019.pdf
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    References listed on IDEAS

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    Cited by:

    1. Ulrich Fritsche, 1999. "Vorlaufeigenschaften von Ifo-Indikatoren für Westdeutschland," Discussion Papers of DIW Berlin 179, DIW Berlin, German Institute for Economic Research.
    2. Aurélien Goutsmedt & Erich Pinzon-Fuchs & Matthieu Renault & Francesco Sergi, 2015. "Criticizing the Lucas Critique: Macroeconometricians' Response to Robert Lucas," Post-Print halshs-01179114, HAL.
    3. Oláh, Dániel, 2018. "Neoliberalism as a Political Programme and Elements of its Implementation – A Narrative in Theoretical History," Public Finance Quarterly, Corvinus University of Budapest, vol. 63(1), pages 96-112.
    4. Muchlinski, Elke, 2003. "Against rigid rules: Keynes's economic theory," Discussion Papers 2003/2, Free University Berlin, School of Business & Economics.
    5. Muchlinski, Elke, 2011. "Die Rezeption der John Maynard Keynes Manuskripte von 1904 bis 1911. Anregungen für die deutschsprachige Diskussion," Discussion Papers 2011/7, Free University Berlin, School of Business & Economics.

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    More about this item

    Keywords

    Keynes on expectations; macroeconomics and modelbuildung contra Lucas and Tinbergen;

    JEL classification:

    • B - Schools of Economic Thought and Methodology
    • B - Schools of Economic Thought and Methodology
    • B - Schools of Economic Thought and Methodology
    • E - Macroeconomics and Monetary Economics
    • E - Macroeconomics and Monetary Economics

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