Theory
in sentence
2204 examples of Theory in a sentence
I know of no country where this scenario has played out successfully, for there are two key problems with this "theory."
But it is the IMF that should be castigated--for pushing an economic
theory
that was rejected long ago.
But what if the compensation assumed by economists in
theory
does not happen in practice?
In economics, Friedman revived and developed the monetarist
theory
that the quantity of money in circulation is the main determinant of how economies perform.
In the early 1980’s, they fell under the spell of monetarism, a simplistic economic
theory
promoted by Milton Friedman.
This crude recipe is based on little economic
theory
or empirical evidence; there is no reason to expect that regardless of the source of inflation , the best response is to increase interest rates.
Contemporary management
theory
tends to distinguish between leadership and management, and places greater emphasis on leaders.
I continue to have disagreements with Stiglitz on the record of policy advice, and with both Stiglitz and Farmer on some points of
theory
regarding secular stagnation.
What about secular stagnation
theory?
Months later, Tsipras and his finance minister, Yanis Varoufakis, an academic expert in game theory, still seem committed to this view, despite the lack of any evidence to support it.
If Greece had defaulted in January, this primary surplus could (in theory) have been redirected from interest payments to finance the higher wages, pensions, and public spending that Syriza had promised in its election campaign.
Investment has flowed in the opposite direction, from capital-rich to capital-poor countries, as economic
theory
would predict.
Within the framework of textbook microeconomic theory, this happens when the “elasticity of substitution” in the production function is greater than one: capital can be substituted for labor, imperfectly, but with a small enough decline in the rate of return so that the share of capital increases with greater capital intensity.
The simple
theory
of profit maximization assumes away the conflicting interests of diverse shareholders.
Standard economic
theory
tells us that net inward migration, like free trade, benefits the native population only after a lag.
The
theory
behind the massive economic stimulus efforts that many governments have undertaken rests on the notion of the “output gap.”
In theory, higher marginal tax rates have well known negative effects – they reduce private incentives to work, save, and invest.
A central bank’s job is to uphold in practice Say’s Law – the principle that output is balanced by demand, with neither too little demand to purchase what is produced (which would cause unemployment) nor too much (which would cause inflation) – because Say’s Law certainly does not hold in
theory.
It has to do with the deep admiration of markets that has developed during the boom, in line with the “efficient markets theory” in academic finance.
There is no
theory
in economics that provides a reason to think that prices in these markets can only go up.
With a flourish, he concludes: “The facts are consistent with Keynesian
theory.
Indeed, nothing in Keynes’
theory
would allow such simplistic causal inferences.
Since then, they have fallen back on a discredited
theory
of “secular stagnation” to explain the tepid recovery.
[Graph]Economists weighing this issue through the lens of “revealed preference theory” would argue that asylum-seekers are analytical decision-makers who seek out countries such as Germany for its low unemployment rate.
According to Bernanke’s “debt deflation” theory, the collapse in consumer prices was one of the causes of the Great Depression, since deflation raised the real value of debts, making it difficult to repay loans.
The Calvo study thus concludes that Bernanke’s debt deflation
theory
of the Great Depression does not generally apply to the more recent crises.
Our models helped explain why markets didn't work in the way the standard
theory
said they should: why markets might not exist, why there might be unemployment, why there might be credit rationing.
The stances I took on financial market liberalization were based on a
theory
of regulation that was based on asymmetries of information.
Concerns about bankruptcy - that the high interest rates pushed by the IMF in East Asia would force firms into distress, even adversely effect the exchange rates while destroying economies and making countries less attractive to investors - derived from a
theory
of corporate finance, itself derived from theories of asymmetric information.
That’s not a
theory.
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