In the Great Depression, employment and investment were low because labor market institutions and industrial polices changed. Edward C. Prescott changedepressionemployment Change image and share on social
Random distributions are not good things, because people are risk-averse, and this risk adversely affects their welfare. If you get too much price uncertainty, all kinds of long-term, mutually beneficial contracts can't be entered into. Edward C. Prescott adverselyaffectaverse share on social
After World War II, there were a lot of pension funds in Europe that were fully funded, but they were pressured to hold a lot of government debt. There was a lot of inflation, and the value of all those assets fell. Those pension funds couldn't honor their promises to the people. Edward C. Prescott assetdebteurope share on social
A lot of technological capital has to be absorbed person-to-person, and that happens more quickly if countries are economically integrated. Edward C. Prescott absorbcapitalcountry Change image and share on social
It is an established scientific fact that monetary policy has had virtually no effect on output and employment in the U.S. since the formation of the Fed. Edward C. Prescott effectemploymentestablish Change image and share on social
Multinational companies use their technological know-how in their foreign subsidiaries, so reciprocal multinational relationships are key - they lead to a vested interest in both countries to remaining open. Edward C. Prescott companycountryforeign share on social
The Chinese are saving like mad, but they are not getting a very good return on their savings. Edward C. Prescott chinesegoodmad Change image and share on social
There is an old maxim which states that good judgment comes from experience, and experience comes from poor judgment. I think something similar can be said of government policy, to wit: Good policy comes from experience, and experience comes from poor policy. Edward C. Prescott experiencegoodgovernment share on social
Economists create their own worlds. We're like little gods with our artificial economics, wanting to see what happens. Edward C. Prescott artificialcreateeconomics Change image and share on social
Economic integration is the path to riches and peace. Edward C. Prescott economicintegrationpath Change image and share on social
