Quote of the week

My first “quote of the week” must be one from John Maynard Keynes. When I was studying economics in the late 1980s, Keynesian theories were for me what made economics interesting, the fact that there are things we can do to control our economic destiny, instead of just leaving the amorphous, invisible hand to guide things. This is Keynes responding to the doctrine that a change in the quantity of currency in circulation would ultimately have no effect on the quantity of consumption, since money prices would simply adjust:

Now in the long run, this is probably true. But this long run is a misleading guide to current affairs. In the long run we are all dead. Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is long past the ocean is flat again.

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