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:
“You don’t decide to build a church because you have money in the bank. You build because God says this is what I should do. Faith is the supplier of things hoped for and the evidence of things not seen.”
—Jim Bakker (b. 1940)
“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)
“Washington has seldom seen so numerous, so industrious or so insidious a lobby. There is every evidence that money without limit is being spent to sustain this lobby.... I know that in this I am speaking for the members of the two houses, who would rejoice as much as I would to be released from this unbearable situation.”
—Woodrow Wilson (1856–1924)