This paper puts forward a proposal to help monetary policies confront the challenge of the “normalisation” of money creation and interest rates. The difficult unwinding of years of unorthodox policies put financial stability at risk in major monetary centres and in EMEs. The authors argue...

This paper concerns a neglected aspect of Lucas's work: his methodological writings, published and unpublished. Particular attention is paid to his views on the relationship between theory and ideology. I start by setting out Lucas's non-standard conception of theory: to him, a theory and a...

Ever since the first edition of Economic Theory in Retrospect, written by Mark Blaug and published in 1962, the distinction between 'rational reconstruction' and 'historical reconstruction' has been a central topic of debate regarding theory vs. methodology within the field of History of...

The rise of "new economic statecraft"-intervention in trade and investment for foreign policy reasons-is increasingly threatening the stability of the global economic system. Building on previous work, we consider the types of intervention we have seen, classifying state measures as behind the...

This paper analyzes Robert Lucas's contribution to economic theory between 1967 (year of his first solo publication) and 1981 (the year before the emergence of Real Business Cycle approach), and it has two parts. The first one, using citation data from three different sources, we try to answer...

Purpose The purpose of this paper is to contribute to the teaching of undergraduate macroeconomics. Design/methodology/approach To suggest a roadmap, based on a consumption function, to be used by instructors willing to teach the Lucas Critique subject. Findings Therefore, this paper proposes a...