👉 Modigliani's theorem, also known as the "modigliani effect," is a complex mathematical theory that explains how changes in government policy can have a significant impact on economic growth and development over time. In this theory, when a central bank intervenes to implement monetary policies that are intended to stimulate economic activity, it is possible for the effects of these interventions to be felt more broadly. This phenomenon is known as "modigliani effect" because it occurs when a small change in the parameters
