The policy-ineffectiveness proposition (PIP) is a new classical theory proposed in 1976 by Thomas J. Sargent and Neil Wallace based upon the theory of rational expectations. It posited that monetary policy could not systematically manage the levels of output and employment in the economy.
Read more about Policy-ineffectiveness Proposition: Theory, Criticisms
Famous quotes containing the word proposition:
“Truth exists. The sole purpose of this proposition is to assert the existence of truth against imbeciles and sceptics.”
—Edward Herbert Of Cherbury, Lord (1583–1648)