abstract:Neutrality of money is the idea that a change in the stock of money affects only nominal variables in the economy such as prices, wages, and exchange rates, with no effect on real (inflation-adjusted) variables, like employment, real GDP, and real consumption.
Many foreignresearches are about the long-runneutralityempirical aspect, moredomesticconcentrates about the neutraltheory's verification in the neutrality ofmoney the field.