Neutrality of Money - Evidence

Evidence

U.S. National Bureau of Economic Research member and International Monetary Fund chief economist Olivier Blanchard has said, there is no real evidence: "All the models we have seen impose the neutrality of money as a maintained assumption. This is very much a matter of faith, based on theoretical considerations rather than on empirical evidence." Recognition of the short-run non-neutrality of money led to the development of the New Keynesian class of macroeconomic models.

Empirical studies have shown that money is neutral in the long-run.

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Famous quotes containing the word evidence:

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