Contraction Quotes
As is often the case with major disputes in economics, the argument over fiscal policy went on for years, with some critics of fiscal policy still defending their position when this book went to press. It seems fair, however, to say that among economists a more or less Keynesian view of the effects of fiscal policy came to prevail. Careful statistical studies at the International Monetary Fund and else where showed that austerity policies have historically been followed by contraction, not expansion. Recent experience, in which countries like Spain and Greece that were forced into severe austerity also experienced severe slumps, seemed to confirm that observation. Furthermore, it was clear that those who had predicted a sharp rise in U. S. interest rates due to budget deficits, leading to conventional crowding out, had been wrong: U. S. long-term interest rates remained near record lows even during the years from 2009 to 2012, when the government ran very large deficits.
Paul Krugman
...the position of the body significantly influences the emotions and sensations during the desired stage of hypnotism; also, whatever the passion which one wants to express by the attitude of the patient, when the muscles necessary to this expression are brought into play, the passion itself bursts forth suddenly and the whole organism responds accordingly. The upright body, the expanded chest, the contracted extensors, all that suggests the feeling of self-esteem, self-determination, resolve and unconquerable pride. As soon as one decreases the contraction of these muscles, that gives to the patient a depressed attitude, with a sunken chest, the expression of the features changes in a very manifest way, the voice and the whole manner of being of the individual now express humility, abasement and pity.
James Braid
When credit is expanding, the rising price level and high profits bring about a high rate of interest. When the expansion has reached, the limit permitted by the stock of gold, the rate of interest is put still higher in order to bring about a fall in the price level. When the fall in prices takes effect, a low rate of interest becomes appropriate, and when credit contraction has proceeded so far that a redundant supply of gold has accumulated, the rate of interest is depressed still lower in order to bring about a renewed rise in the price level. Thus a high rate of interest corresponds first with rising, then with falling, prices, and so synchronizes with high prices. A low rate of interest corresponds first with falling, and then with rising, prices, and so synchronizes with low prices.
Ralph George Hawtrey