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

• Authors: Oleg Deev , Martin Hodula
• Languages of publication: EN

Abstracts

EN

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.

Keywords

EN

endogenous growth theories; superneutrality; SVAR

• Publisher: Sciendo
• Journal: Review of Economic Perspectives
• Year: 2016
• Volume: 16
• Issue: 3
• Pages: 187-203

Dates

published

2016-09-01

received

2015-07-13

accepted

2016-08-11

online

2016-10-13

Contributors

author

Oleg Deev

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

author

Martin Hodula

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

Identifiers

DOI

10.1515/revecp-2016-0012