The liquidity effect and long-run neutrality
نویسندگان
چکیده
منابع مشابه
Testing Long-Run Neutrality
K ey classical macroeconomic hypotheses specify that permanent changes in nominal variables have no effect on real economic variables in the long run. The simplest “long-run neutrality” proposition specifies that a permanent change in the money stock has no long-run consequences for the level of real output. Other classical hypotheses specify that a permanent change in the rate of inflation has...
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In this paper we use a bivariate, fractionally integrated, autoregressive, moving average model of money and real output to extend Fisher and Seater (1993) long-run neutrality requirements to long-memory processes. We derive new restrictions on the order of the nominal and real variable and discuss their implications when long-run neutrality is tested with a reduced form econometric model. Thes...
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ژورنال
عنوان ژورنال: Carnegie-Rochester Conference Series on Public Policy
سال: 1998
ISSN: 0167-2231
DOI: 10.1016/s0167-2231(99)00007-x