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:
“All credibility, all good conscience, all evidence of truth come only from the senses.”
—Friedrich Nietzsche (1844–1900)
“Important as fathers are, their influence on children shouldn’t be exaggerated just because they were ignored so long. There is no evidence that there is something especially good about fathers as caretakers. There are no areas where it can be said that fathers must do certain things in order to achieve certain outcomes in children. The same goes for mothers.”
—Michael Lamb (late–20th century)
“Yet in spite of all they sang in praise of their “Eliza’s reign,” we have evidence that poets may be born and sing in our day, in the presidency of James K. Polk.”
—Henry David Thoreau (1817–1862)