When I tried to sort out the pernicious disagreements between new classical and new Keynesian economists, I conducted a series of conversations with … - Arjo Klamer

A gift is the transfer of a good without an explicit specification of a quid pro quo. The good can be a tangible thing or money, but it also can be intangible, as in the form of time, attention, information or knowledge. A present is a gift and so may be the attention that one person ‘gives’ another, or the time that a person donates to an art institute as a volunteer. Usually a gift entails reciprocity: the giver expects something in return for the gift given. Friends expect friendly gestures in return for their friendly gestures; donors expect some form of appreciation or another; and those who give presents at Christmas expect to receive presents in return. The key to understanding the phenomenon of the gift is the nature of the reciprocity involved.

The other economic camp made for quite a different story. James Tobin (an east-coast Ivy League policy advisor) had already won the Nobel Prize when I spoke with him. A true gentleman, he spoke softly about his life and his Keynesian approach to economics. With due respect, I worried after a time that the interview sounded so automatic, so “done” before, that it would add little to the book. Then I brought up Lucas’s criticism. Tobin began to speak much louder and faster (on transcribing the tape I actually had to adjust the volume). He remained reasonable and gentlemanly but his voice betrayed his indignation toward Lucas and his camp, about how they were misleading sensible Keynesian economic thought.

Reciprocity is the basis of each relationship as long as the values to be exchanged are left open to interpretation. Measurement is enforced only when relationships break up. Just think of divorce proceedings. Accordingly, measurement cannot only devalue the goods measured, but also a relationship.