Meaning: This quote refers to an important moment in the history of economic thought and the development of the rational expectations theory. The quote specifically mentions Robert Lucas, a prominent figure in the field of economics, attending a conference on rational expectations at the University of Minnesota in the spring of 1973. The significance of this event lies in the fact that it played a pivotal role in the development and dissemination of the rational expectations hypothesis, which has had a profound impact on economic theory and policy.

Rational expectations theory is a concept in economics that suggests that individuals form expectations about the future based on all available information, including past events, and that these expectations are typically consistent with the actual outcomes that occur. This theory has far-reaching implications for various areas of economics, including macroeconomics, monetary policy, and finance.

The conference that Lucas attended at the University of Minnesota in 1973 was a key moment in the history of rational expectations theory, as it brought together leading economists to discuss and debate this groundbreaking concept. The exchange of ideas and the presentations given at the conference likely contributed to the further development and refinement of the rational expectations hypothesis.

The mention of receiving a call from Pittsburgh the day after the conference in the quote suggests that significant discussions and interactions took place during and after the event, further indicating the importance of the conference in shaping the trajectory of economic thought at the time.

The quote is attributed to Thomas Sargent, another influential economist known for his work on rational expectations and macroeconomics. Sargent's contributions to the field have been significant, and his collaboration with Robert Lucas and others has been instrumental in advancing the understanding and application of rational expectations theory.

The significance of the conference and the subsequent call from Pittsburgh lies in the fact that it reflects a moment of intellectual exchange and collaboration among leading economists, which likely had a profound impact on the development and dissemination of the rational expectations hypothesis.

In summary, the quote captures a crucial moment in the history of economic thought, highlighting the role of Robert Lucas, Thomas Sargent, and others in the development and dissemination of the rational expectations theory. The conference at the University of Minnesota in 1973 and the subsequent discussions that took place were instrumental in shaping the trajectory of economic theory and policy, and their impact continues to be felt in the field of economics to this day.

Overall, the quote serves as a reminder of the pivotal role played by key figures and significant events in shaping the evolution of economic thought and theory.