Back to the Future: “Please do not Tease or Annoy the Marginal”
Thinking at the Margin (from Gregory Maniw) . We think of each and every economic issue always stepwise in terms of small-yet-recognizable units. Put it differently, we care about such units because managing unrecognizable matters would be sheer “waste of time.” We the un-famous would never mind, for instance, what the answer is to the problem: 3 micrometers +5 nanoseconds= ? , and the like, effectively everywhere in macroeconomics. A case in point: Both terms of the equation “at the margin,” M d - (k ∙ P ∙ Y)= ? ; or “What is M d (at this moment) minus ( - ) the k fraction constantly of the nominal GDP ( P ∙ Y hoc anno ) ? With the above said, at any rate, we usually “think at the margin” and choose the largest “bang for the buck” of all goods, services, assets, things, matters and so on so forth. Unit of Account . In...