IDEAS home Printed from
   My bibliography  Save this article

Problém účinnosti měnové politiky v lucasově teorii phillipsovy křivky
[The problem of efficiency of monetary policy in lucas theory of phillips curve]


  • Karel Brůna


This article reviews the evolution of Lucas theory of Phillips curve. His theory is based on optimal decisions of subjects on supply of products or labor and full price and wage flexibility in competitive markets. In Lucas opinion Phillips curve expresses intertemporal substitution of consumption and leisure resulting from the changes of actual price level from the normal one. Systematic changes of supply can have long lasting real effects only when monetary policy can create permanent money illusion. That is what central banks really can do when expectations are formed adaptively. But subjects, who make rational expectations, know that systematic monetary policy rule do not create real aggregate demand shocks and leave their supply without any changes. To have a real effects money supply changes must be unexpected. Because subjects do not have enough information about current price level central bank can create temporal illusion of real price and wage changes.

Suggested Citation

  • Karel Brůna, 2002. "Problém účinnosti měnové politiky v lucasově teorii phillipsovy křivky [The problem of efficiency of monetary policy in lucas theory of phillips curve]," Politická ekonomie, Prague University of Economics and Business, vol. 2002(5).
  • Handle: RePEc:prg:jnlpol:v:2002:y:2002:i:5:id:383
    DOI: 10.18267/j.polek.383

    Download full text from publisher

    File URL:
    Download Restriction: free of charge

    File URL:
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item

    As the access to this document is restricted, you may want to search for a different version of it.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlpol:v:2002:y:2002:i:5:id:383. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.