Non-Economic terms that are either misleading or misused.

[Free Trade is managed by the invisible hand.]

1. Printing money out of thin air is not that common, but it is used on occasion within the context of a negative view on the federal reserve. This term is misleading because it suggests that the Reserve Simply prints money in order to inflate the economy out of debt. When I hear people use this term I think that the individuals using it has no clue how the reserve works. The reserve does not simply print money out of thin air... The Reserve buys securities and gives the seller a check, and when the the seller deposits the check it leads to an increase in the money supply.

2. Another thing people like throw around is phrase "short run/long run" in order to make some kind of vauge prediction about where will be in. obviously the flaw in this comes from the fact that the short term/long term can mean whatever the individual wants. The second flaw in this comes from the fact that "short term" and "Long term" actually have specific meanings. For example when Alfred Marshal used the term "short term" he meant what a factory could do with the goods that is was producing before they reached the market. For example if i owed a yogurt factory i could change the flavor of the yogurt in the short term....

[phk]

Funny point on #2.

I was taking producer theory once and some guy asked how many years does it take to go from the SR to the LR. Lol.

[Free Trade is managed by the invisible hand.]

Funny point on #2.

I was taking producer theory once and some guy asked how many years does it take to go from the SR to the LR. Lol.

yeah people like to throw around words without actually taking the time to truly understand them.