There are many terms in economics whose definitions drift towards either the high limb of mathematics or the more esoteric regions of history . But it ’s a very simple , everyday term that has economists most up in arm .
In response toa question about the inner debatesthat have their industry - insider grinding their teeth ( while the ease of us barely take observation ) , commenterSnowexplained how one very simple turn of set phrase is turn out to be anything but for economists .
That idiomatic expression in question ? “ Long term ” , and the lack of any exact margin for its definition may be something that those of us who do n’t routinely break up on economic science schoolbook should take notice of as well , for some very practical reason :
Economist here … One of the biggest and sure-enough debates in my field is “ what does retentive term means ? ” Sounds reasonably slow at first , but has some major implications when it get to economical policies . For case , there ’s this theme that increasing inflation also increase British Labour Party on the short term ; the rationality is that because remuneration do n’t increase accordingly on the scant terminal figure ( since declaration are reasonably fixed ) , employers may engage more people because their salaries cost less because of the inflation ; however , on the “ farseeing terminus ” , people will realize they ’re drive bear less than they were look and will either renegotiate their pay ( which might force employers to fire hoi polloi to keep up with the price ) or just quit . Most economic expert ca n’t agree wether this would increase task for a year , a semester , a trimester , a month or if it just does n’t act at all .
By the room , this is just an oversimplified example and there are other factors postulate that might change the results of this special thought experiment … Economy deals with human behavior , and humans are not that uncomplicated …
Image : epSos .de
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