Long-run monetary neutrality: Evidence from high inflation countries

TELATAR E., Cavusoglu T.

EKONOMICKY CASOPIS, vol.53, no.9, pp.895-910, 2005 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 53 Issue: 9
  • Publication Date: 2005
  • Journal Name: EKONOMICKY CASOPIS
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.895-910
  • Hacettepe University Affiliated: Yes

Abstract

The aim of this paper is to investigate issues of long-run neutrality and long-run superneutrality of money using data of high inflation countries (Argentina, Brazil, Ecuador, Mexico, Uruguay and Turkey). It is found that money is long-run neutral but not superneutral with respect to real output for Argentina and Uruguay indicating that money growth has a negative effect on real output. The long-run superneutrality holds for Brazil, Mexico and Turkey. The long-run neutrality is rejected for Ecuador.