Abstract
Money is said to be superneutral – or long-run neutral – if changes in the steady-state rate of growth of the money supply do not affect the value of real economic variables. Superneutrality depends on the hypothesis that the marginal productivity of capital is not affected by the level or the growth rate of money balances. It may hold true in steady state equilibria where the marginal utility of consumption is constant over time. Qualitatively, superneutrality is a fragile, knife-edged result that fails in a variety of contexts. Empirically, however, it is not clear that deviations from superneutrality are quantitatively significant.
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Danthine, JP. (2018). Superneutrality. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2194
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DOI: https://doi.org/10.1057/978-1-349-95189-5_2194
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