John Muth (1930–2005)
Robert Lucas (1937–)
1939 British economist John Hicks analyzes the way that expectations of the future change.
1956 US economist Philip Cagan uses “adaptive expectations” to explain forecasts based on the past.
1985 US economist Gregory Mankiw contributes to the emergence of the “New Keynesian” economics, which uses new models that incorporate people’s rational expectations of the future into their calculations.
The rise of government intervention and spending after World War II provided an important new way for economists to think about the whole economy. In particular they ...