The Lucas islands model is an economic model of the link between money supply and price and output changes in a simplified economy using rational expectations. It delivered a new classical explanation of the Phillips curve relationship between unemployment and inflation. The model was formulated by Robert Lucas, Jr. in a series of papers in the 1970s.[1][2][3]
^Lucas, R. E. Jr. (1972). "Expectations and the Neutrality of Money". Journal of Economic Theory. 4 (2): 103–124. CiteSeerX 10.1.1.592.6178. doi:10.1016/0022-0531(72)90142-1.
^Lucas (1973). "Some International Evidence on Output-Inflation Trade-offs". American Economic Review. 63 (3): 326–334. JSTOR 1914364.
^Lucas (1975). "An Equilibrium Model of the Business Cycle". Journal of Political Economy. 83 (6): 1113–1144. doi:10.1086/260386.
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