Non Neutrality of Money in Dispersion: Hume Revisited
نویسندگان
چکیده
This paper seeks to explore non neutrality of money in the dispersion of transition process following an unanticipated money injection. It examines the responses of the output and nominal price to shocks. We show that a certain class of money injection schemes will induce quantitatively significant and persistent response in output, sluggish price adjustment, and a short-run negatively-sloped Phillips curve. The short-run trade-off between output and inflation is not exploitable in the long run. JEL Classification Number: C73, D82, E40
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