“Money is non-neutral, and the capital structure in an economy consists of combination of heterogeneous capital goods that multiple-specific uses. Once these propositions are included in the analysis, along with other messy aspects of the real world, our understanding of market theory and the price system shifts drastically. Nothing can be treated as given. Everything must fall out of the analysis of exchange and production. Economic analysis is about economic forces at work, not the analysis of situations after those forces have done their job.” Read more.
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