ABSTRACT
Senior indetermination stresses the limitations of “pure” theory to derive normative conclusions. This paper tries to show that Lucas runs into the so-called Ricardian Vice, when he goes straight from abstract theoretical models to economic policy formulations. It is argued that such a procedure is related to Lucas methodological positions. That is, the “as if” methodology - inherited from Friedman - would lead to disregard of external elements in policy prescriptions.
KEYWORDS:
Ricardian Vice; indetermination of Senior; Lucas; New Classical; history of economic thought