Helloooo (what city is this again?) Cleveland!

There is no such thing as The Matthew Francis Show, except in the imagination of Morgan Jackson, who created this image. However, I have never looked more like Isaac Asimov. [Credit: Morgan Jackson ]

As I mentioned last week, I have relocated to Cleveland. Furniture and books (the important things) are still en route, with a scheduled arrival on Thursday. In the meantime, between waiting for…

Robert Lucas won the Nobel Memorial Prize in Economics for his work on rational expectations: the idea that people becoming used to certain interventions in the economy distorts the predictive power of economic models. An example of this is below.

[W]hen Lucas and his wife, Rita, got a divorce in 1988, she negotiated for 50 percent of any Nobel Prize money that he might receive, with an October 31, 1995, expiration date on this clause. He won the prize on October 10, 1995. Economists joked that Lucas’s model applied to his wife: she had rational—or at least correct—expectations. 

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