Lucas was widely acclaimed because he furthered mainstream theory that markets could work without crises or distortions as long as individuals has sufficient information to make ‘rational decisions’ on their own interests. So the reality of crises and inequalities was due not to capitalist markets but to ‘irrational’ decisions by authorities or unions interfering with markets.
Lucas had succeeded in his critique in reducing Keynesian macro economics to a weak and feeble beast. No wonder he got a Nobel prize at the height of the neoclassical, neoliberal ascendancy in 1995.
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