Must-Read: George Akerlof was right forty years ago to say that the “microfoundations” of Lucas and Sargent were simply fake: Unemployment arising because workers can’t tell what their wages really are because they are unable to observe the prices they pay, and thus confuse a downward nominal shock to incomes and prices with a downward … Continue reading Must-Read: George Akerlof (1979): The Case against Conservative Macroeconomics: An Inaugural Lecture