“Modern macroeconomics flourished in its pursuit of the secrets of long-run economic growth, but it neglected short-run economic problems. In the long run, prices are flexible, and the growth of the economy is determined by the growth in the ability to supply goods and services. But in the short run prices are not flexible. Growth can be held back because prices are too high and, as a result, demand is too low. Keynes made his name by analyzing short-run problems caused by the stickiness or even rigidity of some important prices. But these Keynesian ideas were abandoned by modern macroeconomics.”

—  Peter Temin

Why Keynes is Important Today (2014)

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "Modern macroeconomics flourished in its pursuit of the secrets of long-run economic growth, but it neglected short-run …" by Peter Temin?
Peter Temin photo
Peter Temin 3
American economist 1937

Related quotes

“An idealist believes the short run doesn’t count. A cynic believes the long run doesn’t matter. A realist believes that what is done or left undone in the short run determines the long run.”

Sydney J. Harris (1917–1986) American journalist

Reader’s Digest (May 1979)

John F. Kennedy photo

“In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now.”

John F. Kennedy (1917–1963) 35th president of the United States of America

1962, Address and Question and Answer Period at the Economic Club of New York (549)

“The New Finance focused on the market's major systematic mistake. In failing to appreciate the strength of competitive forces in a market economy, it over estimates the length of the short run. In doing so, it overreacts to records of success and failure for individual companies, driving the prices of successful firms too high and their unsuccessful counterparts too low.”

Robert Haugen (1942–2013) American economist

Source: The Inefficient Stock Market - What Pays Off And Why (1999), Chapter 15, The Wrong 20-yard Line, p. 142

“My recent work on macroeconomics has stressed long-term issues, including the determinants of long-run economic growth. From the standpoint of fighting world poverty, nothing is more important than figuring out which policies differentiate the fast-growing countries from the slow-growing ones.”

Robert Barro (1944) American classical macroeconomist

Source: Nothing Is Sacred (2002), p. xviii

Benjamin Graham photo

“[Shorter variant:] In the short run, the market is a voting machine but in the long run, it is a weighing machine.”

Benjamin Graham (1894–1976) American investor

Quoted and attributed to Graham in Warren Buffett's 1993 letter to investors. https://www.berkshirehathaway.com/letters/1993.html
The statement is not found in any of Graham's publications or lecture transcripts, and when asked, Buffett could not provide a reference. https://www.bogleheads.org/forum/viewtopic.php?t=77840
Disputed

David Harvey photo

“There is, in short, no 'spatial fix' that can contain the contradictions of capitalism in the long run.”

David Harvey (1935) British anthropologist

Source: The Limits To Capital (2006 VERSO Edition), Chapter 13, Crisis In The Space Economy Of Capitalism, p. 442

Howard Zinn photo

“In the long run, the oppressor is also a victim. In the short run (and so far, human history has consisted only of short runs), the victims, themselves desperate and tainted with the culture that oppresses them, turn on other victims.”

Howard Zinn book A People's History of the United States

Source: A People's History of the United States

Peter D. Schiff photo

“Real economic growth emanates from increased productivity, which tends to hold prices down.”

Peter D. Schiff (1963) American entrepreneur, economist and author

Quotes from Crash Proof (2006)

Simon Kuznets photo

“Distinctions must be kept in mind between quantity and quality of growth, between its costs and return, and between the short and the long term. Goals for more growth should specify more growth of what and for what.”

Simon Kuznets (1901–1985) economist

Simon Kuznets in: Herbert David Croly eds. (1962) The New Republic Vol. 147. p. 29: About rethinking the system of national accounting

“In traditional economic writings dealing with the economy as a whole, it is usually assumed that prices are highly flexible and that economic adjustment is brought about through price changes. We are going to examine inflexible prices.”

Gardiner C. Means (1896–1988) American economist

Gardiner C. Means, "Price inflexibility and the requirements of a stabilizing monetary policy." Journal of the American Statistical Association 30.190 (1935): 401-413.

Related topics