Evidence
U.S. National Bureau of Economic Research member and International Monetary Fund chief economist Olivier Blanchard has said, there is no real evidence: "All the models we have seen impose the neutrality of money as a maintained assumption. This is very much a matter of faith, based on theoretical considerations rather than on empirical evidence." Recognition of the short-run non-neutrality of money led to the development of the New Keynesian class of macroeconomic models.
Empirical studies have shown that money is neutral in the long-run.
Read more about this topic: Neutrality Of Money
Famous quotes containing the word evidence:
“No further evidence is needed to show that “mental illness” is not the name of a biological condition whose nature awaits to be elucidated, but is the name of a concept whose purpose is to obscure the obvious.”
—Thomas Szasz (b. 1920)
“No doubt Jews are most obnoxious creatures. Any competent historian or psychoanalyst can bring a mass of incontrovertible evidence to prove that it would have been better for the world if the Jews had never existed. But I, as an Irishman, can, with patriotic relish, demonstrate the same of the English. Also of the Irish.... We all live in glass houses. Is it wise to throw stones at the Jews? Is it wise to throw stones at all?”
—George Bernard Shaw (1856–1950)
“All credibility, all good conscience, all evidence of truth come only from the senses.”
—Friedrich Nietzsche (1844–1900)