# Neil Wallace

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{{short description|American economist}}
{{Use mdy dates|date=July 2025}}

{{BLP sources|date=November 2013}}
{{Infobox economist
| name             = Neil Wallace
| school_tradition = [New classical economics](/source/New_classical_economics)

| image            =
| image_size       =
| caption          =
| birth_date       = {{Birth year and age|1939}}
| birth_place      = [New York City](/source/New_York_City), U.S.
| death_date       =
| death_place      =
| institution      = [Penn State University](/source/Pennsylvania_State_University)<br>[University of Miami](/source/Miami_Herbert_Business_School)<br>[University of Minnesota](/source/University_of_Minnesota)
| field            = [Monetary economics](/source/Monetary_economics)
| alma_mater       = [University of Chicago](/source/University_of_Chicago)<br>[Columbia University](/source/Columbia_University)
| doctoral_advisor = [Milton Friedman](/source/Milton_Friedman)
| doctoral_students = [Robert M. Townsend](/source/Robert_M._Townsend)<br>[S. Rao Aiyagari](/source/S._Rao_Aiyagari)<br>[Randall Wright](/source/Randall_Wright)<br>[Lars Ljungqvist](/source/Lars_Ljungqvist)<br>[Per Krusell](/source/Per_Krusell)
| influences       = [John Muth](/source/John_Muth)<br>[Robert Lucas, Jr.](/source/Robert_Lucas%2C_Jr.)
| influenced       = 
| contributions    =
| awards           =
| signature        = <!-- file name only -->
| repec_prefix = e | repec_id = pwa33
}}

'''Neil Wallace''' (born 1939) is an American economist and professor of economics at [Penn State University](/source/Pennsylvania_State_University). He is considered one of the main proponents of [new classical macroeconomics](/source/new_classical_macroeconomics) in the field of [economics](/source/economics).<ref>{{cite book |last=Galbács |first=Peter |title=The Theory of New Classical Macroeconomics. A Positive Critique |location=Heidelberg/New York/Dordrecht/London |publisher=Springer |year=2015 |isbn= 978-3-319-17578-2 |doi=10.1007/978-3-319-17578-2 |series=Contributions to Economics }}</ref>

==Early life and education==
Wallace was born in 1939, in [New York City](/source/New_York_City). He attended [Columbia University](/source/Columbia_University), where he earned a [BA](/source/Bachelor_of_Arts) in economics in 1960 and his [Ph.D](/source/Doctor_of_Philosophy) in economics from the [University of Chicago](/source/University_of_Chicago) in 1964, where he studied under [Nobel Prize](/source/Nobel_Prize)-winning economist [Milton Friedman](/source/Milton_Friedman).

==Career==
In 1969, Wallace was hired as a consultant to the [Federal Reserve Bank of Minneapolis](/source/Federal_Reserve_Bank_of_Minneapolis). He served as a professor at the [University of Minnesota](/source/University_of_Minnesota) from 1974 until 1994 and as a professor at the [University of Miami](/source/University_of_Miami) from 1994 until 1997. In 1997, he was hired as a professor at [Penn State](/source/Pennsylvania_State_University).

In 1975, he and [Thomas J. Sargent](/source/Thomas_J._Sargent) proposed the [policy-ineffectiveness proposition](/source/policy-ineffectiveness_proposition), which refuted a basic assumption of [Keynesian economics](/source/Keynesian_economics). In 2012, he was elected Distinguished Fellow of the [American Economic Association](/source/American_Economic_Association).

==Selected publications==
* Ricardo De O. Cavalcanti and Neil Wallace, 1999. "Inside and Outside Money as Alternative Media of Exchange," ''Journal of Money, Credit and Banking'', 31(3, Part 2), pp. [https://www.jstor.org/pss/2601062 443]–457.
* [Thomas J. Sargent](/source/Thomas_J._Sargent) and Neil Wallace, "Rational Expectations and the Dynamics of Hyperinflation," ''International Economic Review'', 14(2),  (Jun., 1973), pp. [https://web.archive.org/web/20060909063754/http://www.cbe.csueastbay.edu/~alima/courses/6315/Week05/WallaceSargentHyperinflation.pdf 328–350].
* _____ and _____, 1973.  The Stability of Models of Money and Growth with Perfect Foresight," ''Econometrica'', 41(6), pp. [https://www.jstor.org/pss/1914034 1043]–1048.
* {{Cite journal |last1=Sargent |first1=Thomas |name-list-style=amp |first2=Neil |last2=Wallace |year=1975 |title='Rational' Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule |journal=Journal of Political Economy |volume=83 |issue=2 |pages=241–254 |doi=10.1086/260321 |s2cid=154301791 }}
* {{Cite journal |last1=Sargent |first1=Thomas |name-list-style=amp |first2=Neil |last2=Wallace |year=1976 |title=Rational Expectations and the Theory of Economic Policy |journal=[Journal of Monetary Economics](/source/Journal_of_Monetary_Economics) |volume=2 |issue=2 |pages=169–183 |doi= 10.1016/0304-3932(76)90032-5|url=http://www.minneapolisfed.org/research/WP/WP29.pdf }}
* _____ and _____, 1981. "Some Unpleasant Monetarist Arithmetic," Federal Reserve Bank of Minneapolis  ''Quarterly Review'', 5(3), pp. [https://web.archive.org/web/20110727055011/http://research.mpls.frb.fed.us/research/qr/qr531.pdf 1–17.]
* Neil Wallace, 1980. The Overlapping Generations Model of Fiat Money," in ''Models of Monetary Economies'', Federal Reserve Bank of Minneapolis, pp. [https://web.archive.org/web/20120314212443/http://www.minneapolisfed.org/publications_papers/books/models/cp49.pdf 49–82]. [http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.141.7429 Abstract].
* _____, 2001.  "Whither Monetary Economics?," ''International Economic Review'', 42(4), pp. [https://www.jstor.org/pss/826976 p. 847]–869.

==Notes==
{{Reflist}}

==External links==
*[https://econ.la.psu.edu/people/nxw9/ Neil Wallace biography] at Penn State Department of Economics
*[https://scholar.google.com/citations?user=pc3ZUvcAAAAJ&hl=en Neil Wallace] at [Google Scholar](/source/Google_Scholar)

{{Neoclassical economists}}

{{Authority control}}

{{DEFAULTSORT:Wallace, Neil}}
Category:1939 births
Category:Living people
Category:20th-century American economists
Category:21st-century American economists
Category:Monetary economists
Category:New classical economists
Category:Columbia College, Columbia University alumni
Category:University of Chicago alumni
Category:University of Minnesota faculty
Category:University of Miami faculty
Category:Pennsylvania State University faculty
Category:Fellows of the Econometric Society
Category:Fellows of the American Academy of Arts and Sciences
Category:Distinguished fellows of the American Economic Association

{{US-economist-20thC-stub}}

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Adapted from the Wikipedia article [Neil Wallace](https://en.wikipedia.org/wiki/Neil_Wallace) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Neil_Wallace?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.