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:
“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)
“All credibility, all good conscience, all evidence of truth come only from the senses.”
—Friedrich Nietzsche (1844–1900)
“If you are of the opinion that the contemplation of suicide is sufficient evidence of a poetic nature, do not forget that actions speak louder than words.”
—Fran Lebowitz (b. 1951)