Publication details

The Long-Run Superneutrality of Money Revised: the Extended European Evidence



Year of publication 2016
Type Article in Periodical
Magazine / Source Review of Economic Perspectives - Národohospodářský obzor
MU Faculty or unit

Faculty of Economics and Administration

Field Management and administrative
Keywords endogenous growth theories; superneutrality; SVAR
Description This article investigates the validity of the money superneutrality concept for the large panel of European economies. While focusing exclusively on endogenous growth theories including the Mundell-Tobin effect, we examine the long-run response of real output to a permanent inflation shock in every studied country using a structural vector autoregressive framework. For the majority of countries in our sample, the long-run superneutrality concept is confirmed since the original increase/decrease in output growth fades in time. We also test the additional hypothesis of whether the group of countries with smaller in-sample inflation mean forms the exception to the long-run money superneutrality. As the result, modern economies might be better described from the viewpoint of Sidrauski.
Related projects:

You are running an old browser version. We recommend updating your browser to its latest version.

More info