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


  • Deev Oleg

    () (Masaryk University, Faculty of Economics and Administration, Department of Finance, Lipová 41a, 602 00 Brno, Czechia)

  • Hodula Martin

    () (VŠB-Technical University of Ostrava, Economic Faculty, Department of Economics, Sokolská třída 33, 701 21 Ostrava, Czechia)


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 longrun 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.

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  • Deev Oleg & Hodula Martin, 2016. "The Long-Run Superneutrality of Money Revised: the Extended European Evidence," Review of Economic Perspectives, De Gruyter Open, vol. 16(3), pages 187-203, September.
  • Handle: RePEc:vrs:reoecp:v:16:y:2016:i:3:p:187-203:n:2

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    References listed on IDEAS

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