Lucas Critique and the Essence of New Classical Approach: Rational expectation

1
Lucas Critique and the Essence of New Classical
Approach Rational expectation
2
There are five essential features in a New
Classical model
3
Aggregate Supply and Technology Shock
4
A Simple long run new classical macro economic
model with the productivity shock (very similar
to Ramsey (1927) problem)
5
Aggregate supply
6
Price Movement and Monetary Policy Rule
7
Expected and Actual Prices
8
Policy Irrelevance Proposition
9
Policy Irrelevance Proposition
10
How to Test a Rational Expectation Model?
11
What do other economists think of this
conclusion?
12
Adaptive Expectation
13
Adaptive Expectation
14
Adaptive Expectation
15
References