American Experience
A Brilliant Madness: American Nobel Economists
Robert E. Lucas Jr.

Lucas grew up in a liberal New Deal family in Washington State. From his parents he learned that "one could decide for oneself what kind of person to be, and that one ought to think about these decisions." He is the principal formulator of the rational expectations hypothesis, the assumption that people use the best available information about government policy when making their decisions rather than committing the systematic errors assumed by earlier theory. Or in other words, "Fool me once, shame on you; fool me twice, shame on me."

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