The equilibrium price level is determined at the point where the money market is in equilibrium. The temporary suspension of Walras' Law, far from making economic nonsense, thus appears as the crucial "trick" by which the tatonnement process is decomposed in two parts. This analysis confirms that for a neoclassical general equilibrium system with neutral money there is indeed a consistent decomposition procedure, based on appropriate compensation principles, permitting the determination of real variables in the real sector while the price level is determined in the monetary sector. However, the amount of intellectual effort which, in the wake of Lange and Patinkin, was devoted to this issue, is entirely out of proportion to its economic significance. The real economic question is not whether a system can be dichotomized, but whether money is neutral.
Jürg NiehansRelated topics
compensation decomposition effort equilibrium far general intellectual law making market money permitting point procedure question real sector significance suspension thus trick wake while Lange neoclassical partsRelated quotes
In fact, the only person to rival Friedman for policy influence in the twentieth century is John Maynard Keynes, who had a strikingly different view of the role of government. Keynes was influential because he advocated more government intervention into what he perceived as poorly functioning private economies caught up in the Great Depression. In contrast to Keynes, Friedman put the main blame for the Depression on government failures, especially of monetary policy. Hence, the Depression did not make Friedman a fan of big government. He also found in the Federal Reserve's failure to prevent deflation an argument in favor of monetary rules. As the world evolved- with low inflation becoming the major mission of central banks and free markets and secure property rights becoming the main policies to promote economic growth-Friedman surely won the intellectual battle.
Robert Barro
Would you like to know, for instance, to what extent higher mathematics is used in our two great industries? Well, it is never used at all. Having found this to be the case in my own experience, after quite a long career, I wondered whether I was not an exception; so I made enquiries, and I found that it was a general rule that neither engineers nor managers used higher mathematics in carrying out their duties. We must, of course, learn mathematics that goes without saying but the question is how much must we learn? Up to the present this point has nearly always been decided simply by professors, but it seems to me to be a question in which professors do not count very much, and in which they count less as they become more learned and more devoted to their work. They would like to pass on all their scientific knowledge and they find that their pupils always leave them too soon.
Henri Fayol
"Psychiatry" and "psychiatrist" are easily redefined to mean "an anti-social enemy of the people". This takes the kill crazy psychiatrist off the preferred list of professions ... The redefinition of words is done by associating different emotions and symbols with the word than were intended... Scientologists are redefining "doctor", "Psychiatry" and "psychology" to mean "undesirable antisocial elements"... The way to redefine a word is to get the new definition repeated as often as possible. Thus it is necessary to redefine medicine, psychiatry and psychology downward and define Dianetics and Scientology upwards. This, so far as words are concerned, is the public opinion battle for belief in your definitions, and not those of the opposition. A consistent, repeated effort is the key to any success with this technique of propaganda.
L. Ron Hubbard
The change toward larger Gestalten and the necessity of this change for both humanistic and formal reasons can be illustrated by considering Sullivan's emphasis upon the phenomena of interaction. This emphasis is very clearly part of a defense of man against the older, more mechanistic thinking which saw him so heavily determined by his internal psychological structure that he could easily be manipulated by pressing the appropriate buttons - a doctrine which made the therapeutic interview into a one-way process with the patient in a relatively passive role. The Sullivanian doctrine places the therapeutic interview on a human level, defining it as a significant meeting between two human beings. The role of the therapist is no longer to be dehumanized in terms of definable purposes which he can plan, and the role of the patient is no longer dehumanized into that of an object of manipulation.
Gregory Bateson
By straying from the text of the Constitution, substantive due process exalts judges at the expense of the People from whom they derive their authority. Petitioners argue that by enshrining the traditional definition of marriage in their State Constitutions through voter-approved amendments, the States have put the issue 'beyond the reach of the normal democratic process'. But the result petitioners seek is far less democratic. They ask nine judges on this Court to enshrine their definition of marriage in the Federal Constitution and thus put it beyond the reach of the normal democratic process for the entire Nation. That a 'bare majority' of this Court is able to grant this wish, wiping out with a stroke of the keyboard the results of the political process in over 30 States, based on a provision that guarantees only 'due process' is but further evidence of the danger of substantive due process.
Clarence Thomas