Collapse Sidebar

Students / Subjects


Experimenters
Email:

Password:


Forgot password?

Register

Cataloged Resource Summary

 

Title

The Lucas Island Experiment

Author

Denise Hazlett

Category

Macroeconomics and Monetary Economics

Type

Non-computerized experiment

Description

This experiment demonstrates the effects on real aggregate output of anticipated versus unanticipated monetary policy. The experiment follows Lucas's (1972) description of unanticipated monetary disturbances leading to confusion about real values and hence to fluctuations in output. See Sargent (1996) for a description of the precursors to Lucas's idea, and of its legacy. In this experiment, students gradually learn how to anticipate monetary policy, based on past Federal Reserve behavior, and therefore render monetary policy ineffective.

URL

http://mcnet.marietta.edu/~delemeeg/expernom/f96.html#hazlett

Home URL

http://mcnet.marietta.edu/~delemeeg/expernom.html
Copyright 2006 Experimental Economics Center. All rights reserved. Send us feedback