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2 unusual facts about Long run and short run


Long run and short run

A famous critique of neglecting short-run analysis was by John Maynard Keynes, who wrote that "In the long run, we are all dead," referring to the long-run proposition of the quantity theory of, for example, a doubling of the money supply doubling the price level.

J.M. Keynes (1936) emphasized fundamental factors of a market economy that might result in prolonged periods away from full-employment.



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