<abstract xmlns="http://www.w3.org/1999/xhtml"><p> 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.</p></abstract>

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.

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

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

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

Review of Economic Perspectives

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"The Long-Run Superneutrality of Money Revised: the Extended European Evidence"}

This article investigates the validity of the money superneutrality concept for the large panel of European economies. While focusing exclusively on endogenous...

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

Pubblicato online: 13 ott 2016

Pagine: 187 - 203

Ricevuto: 13 lug 2015

Accettato: 11 ago 2016

DOI: https://doi.org/10.1515/revecp-2016-0012

Parole chiave
endogenous growth theories, superneutrality, SVAR

© by Oleg Deev

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

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

Pubblicato online: 13 ott 2016

Pagine: 187 - 203

Ricevuto: 13 lug 2015

Accettato: 11 ago 2016

DOI: https://doi.org/10.1515/revecp-2016-0012

Parole chiaveendogenous growth theories, superneutrality, SVAR

© by Oleg Deev

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Parole chiave
endogenous growth theories, superneutrality, SVAR