According to [the general equilibrium approach to monetary theory], the principal way in which financial policies and events affect aggregate demand is by changing the valuations of physical assets relative to their replacement costs. (James Tobin)

According to [the general equilibrium approach to monetary theory], the principal way in which financial policies and events affect aggregate demand is by changing the valuations of physical assets relative to their replacement costs.

James Tobin

Related topics

affect aggregate approach assets changing demand equilibrium general physical principal relative replacement theory way costs

Related quotes

I do not know which will be the destiny of each one of you but one thing I know - the only ones among you who will be really happy will be those who have sought and found the way to serve.
Albert Schweitzer
Love is something far more than desire for sexual intercourse; it is the principal means of escape from the loneliness which afflicts most men and women throughout the greater part of their lives.
Bertrand Russell
A word is not a crystal, transparent and unchanged; it is the skin of a living thought and may vary greatly in color and content according to the circumstances and time in which it is used.
Oliver Wendell Holmes Jr.
Mistakes are a part of being human. Appreciate your mistakes for what they are: precious life lessons that can only be learned the hard way. Unless it's a fatal mistake, which, at least, others can learn from.
Al Franken
The whole financial basis of insurance would be questionable if it were possible to change the relative frequency of the occurrence of the insurance cases (deaths, etc.) by excluding, for example, every tenth one of the insured persons, or by some selection principal.
Richard von Mises