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A Review of the Literature on Monetary Neutrality

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  • Tang, Maggie May-Jean

Abstract

Long-run monetary neutrality (LRMN) is an idea expressed from the quantity theory of money, which posits that a permanent change in money stock has no real effect in the long-run. The LRMN theory is an empirical matter with regard to monetary policy, where it helps to define the monetary transmission and is able to identify the effectiveness of monetary policy by investigating the role of money in the long run. As a result, the study of LRMN has attracted great interest for a long period of time.

Suggested Citation

  • Tang, Maggie May-Jean, 2016. "A Review of the Literature on Monetary Neutrality," MPRA Paper 70113, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:70113
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    File URL: https://mpra.ub.uni-muenchen.de/70113/1/MPRA_paper_70113.pdf
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    References listed on IDEAS

    as
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    2. Chin-Hong PUAH,* & Muzafar Shah HABIBULLAH** & Shazali Abu MANSOR*, 2002. "Some Empirical Evidence On The Quantity Theoretic Proposition Of Money In Asean-5," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 18, pages 31-47.
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    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates

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