James Tobin

"The natural rate of unemployment is not truly natural but institutional."

"Asset bubbles reflect not stupidity but the difficulty of valuing uncertain future flows."

"Tax policy should be judged not just by revenue but by its effects on incentives and equity."

"Saving and investment are not the same thing, and confusion between them causes errors."

"The role of the state is not to replace markets but to create conditions for them to function."

"Economic models are useful fictions, not descriptions of reality."

"Financial regulation is necessary because markets left alone create excessive instability."

"The Fed operates with considerable discretion, and that discretion must be exercised wisely."

"Demand for money is demand for the services that money provides, not just medium of exchange."

"Real wages depend on productivity, not on monetary manipulation."

"The problem of the business cycle is not its existence but its severity and unpredictability."

"Asset prices are determined by expectations about the future, which are inherently uncertain."

"Economic policy must balance efficiency with equity or it will lose legitimacy."

"The multiplier depends on the current state of the economy and available resources."

"Inflation is not just a monetary phenomenon but also reflects real supply shocks and expectations."

"The purpose of central banking is to promote the general welfare, not just price stability."

"Labor is not just an input to production but the embodiment of human purposes and dignity."

"Economic growth matters because it expands the possibilities for human flourishing."

"Financial markets are forward-looking institutions dealing with radical uncertainty."

"Deflation is particularly destructive because it increases the real burden of debt."

"The distribution of wealth is not merely an economic outcome but a political one."

"Monetary union without fiscal integration contains inherent instabilities."

"The natural rate of interest is the rate that equilibrates real investment and saving."

"Economic policy operates with long and variable lags, making it difficult to fine-tune."

"The stock market is a forward-looking mechanism that discounts future earnings and risks."

"Inequality is both an economic issue and a fundamental question about justice."

"Capital mobility across borders creates both opportunities and vulnerabilities."

"The nominal rigidities in the economy give monetary policy real effects in the short run."

"Financial markets work better with more information, but information alone is not enough."

"The goal of monetary policy should be stable growth with full employment."