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:
“Analysis is more likely to adjust evidence than to adjust itself.”
—Mason Cooley (b. 1927)
“In spite of the air of fable ... the public were still not at all disposed to receive it as fable. I thence concluded that the facts of my narrative would prove of such a nature as to carry with them sufficient evidence of their own authenticity.”
—Edgar Allan Poe (1809–1849)
“Never say a humorous thing to a man who does not possess humour. He will always use it in evidence against you.”
—Herbert, Sir Beerbohm (1853–1917)