Overview

• Robert E. Lucas Jr. challenged the idea that governments can easily manipulate economies.
• He was best known for his theory of "rational expectations," which said government policies often fail to achieve their goals.
• Lucas advocated eliminating taxes on capital gains and supported supply-side economics.
• He taught at the University of Chicago and collaborated with Nancy L. Stokey.
• Lucas received the Nobel Memorial Prize in Economic Sciences in 1995 for his work on rational expectations.