In a recent interview Robert Lucas says he now believes that “the evidence on postwar recessions … overwhelmingly supports the dominant importance of real shocks.”
So, according to Lucas, changes in tastes and technologies should be able to explain the main fluctuations in e.g. unemployment that we have seen during the last six or seven decades.Lars P. Syll's blog
Macroeconomic quackery
Lars P. Syll | Professor of Economics, Malmo University
