However, lost in the debate after Lucas’ statement was the message that monetary policy always affected nominal variables like inflation, even if fully anticipated. Two Nobel Laureates In the 1980s, two economists, also Nobel winners, Finn Kydland and Ed Prescott, argued that fully transparent rules rather than discretionary policy were more efficient and credible.
That is why creativity and a truly global outlook will be necessary in order to place future cooperation between the EU27 and the United Kingdom on a solid legal footing. For one thing is also clear – the world’s fast-growing regions are not going to stand idly by while Europe indulges in navel gazing.