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Dates: during 1970-1979
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ROBERT LUCAS, 41. The "rational expectations" economists hold that short-term policy jiggering cannot outsmart human ingenuity, or, you can't fool all the people even some of the time. One principal in this school is Lucas of the University of Chicago. Says he: "The real amount of goods and services available cannot be manipulated effectively by short-term market interferences. Such policies are based on the premise that we, the Government, can make people work harder, invest more or perform some other desired objective. But people are skeptical, so such policies do not work any more. The public...

Author: /time Magazine | Title: Business: Ideas from the Innovators | 8/27/1979 | See Source »

Lucas proposes that the Government adopt only firm, long-term policies upon which rational expectations can be based. Says he: "Ideally, we should announce a monetary expansion policy of 4% annually for the next seven years and then stick to it. People would respond, and inflation would be cured with a minimal risk of a deep recession...

Author: /time Magazine | Title: Business: Ideas from the Innovators | 8/27/1979 | See Source »

...managers, said Miller, must draw up "an acceptable financial and operating plan" for dealing with the company's short-and long-term problems as well as spelling out its cash needs. This strategy will have to include sacrifices by everybody with an interest in saving the company: management, stockholders, employees, bankers and suppliers. Only such an effort can ease the Chrysler crisis. The long troubled company lost $204.6 million last year but topped that in this year's second quarter alone, when it ran $207.1 million in the red. Faced with the possibility of a shattering loss...

Author: /time Magazine | Title: Business: Chrysler's Crisis Bailout | 8/20/1979 | See Source »

...sometimes ten or more-are withdrawn through the cervix by means of a catheter. Each embryo is then transferred, either by a six-inch incision in the side or directly through the cervix, to the uterus of a less perfect host mother, which carries the superior calf to full term. Since supercows, or "queen bees," can be bred seven times a year, each can produce 35 or more embryos annually. This can make the herd better but not significantly bigger since, even with embryo transfer, one cow is necessary for the gestation of each calf...

Author: /time Magazine | Title: Business: Supercows | 8/20/1979 | See Source »

...administered the synthetic version of LRH to 27 women, aged 21 to 37, only one of whom also relied on an I.U.D. The drug was remarkably effective. Only two women showed any signs of ovulation - probably because of faulty dosages, the doctors suspect. Though the hormone's long-term effects are still unknown, immediate side effects were limited to coldlike sniffles and temporary headaches. There is speculation that LRH derivatives may also prove useful as a male contraceptive since gonadotropins regulate the production of sperm, but the actual marketing of a nasal contraceptive for either men or women...

Author: /time Magazine | Title: CAPSULES: Capsules | 8/20/1979 | See Source »

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