What is Lucas Critique?

Lucas's critique is a concept named after Robert Lucas and used when making policies in macroeconomic. The concept argues that one cannot project accurate conclusions about macroeconomic phenomena using past data. It also suggests that it is unworldly to predict the implications of change on microeconomic policies based on historical data. Besides, the concept states that a change in each policy affects the circumstance occurring in different situations. The critique is used when making the decision rules of the Keynesian models.

Critique: Critique is a way of systematically studying written or oral discourse, finding faults and negative judgments. Critique contains detailed assessments and analysis of things like political or economic, giving careful judgments on which a person gives opinions.