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.

JEL Classification: B22; B31.