Lucas, modern macroeconomics and the post Keynesians

As one of the founding fathers of the New Classical school of thought, Robert E. Lucas has made several important contributions. As such, his thinking had an immense impact on what later became modern mainstream macroeconomics (New Neoclassical Synthesis). In the present chapter, the focus is especially on his famous ‘Lucas critique’, which substantially influenced how to build macroeconomic models and how to evaluate economic policies. However, much of this critique should not come as a total surprise to post-Keynesians, as Keynes himself discussed many of the elements present in Lucas’ 1976 article.