Dispersed information and the non-neutrality of money: fifty years after Lucas, 1972

This paper highlights the renewed interest in Lucas’s explanation of non-neutrality money put forward his 1972 article – based on information dispersion and signal extraction problems by an increasing part literature investigating transmission mechanism monetary policy shocks. We review main contributions to this renewal, illustrate relationship between work own model. also show that some assumptions made line research have been questioned subsequent developments same track, thereby challenging its ability produce large amounts calling for further research.