Neutralność pieniądza
Neutrality of money

Summary/Abstract: The aim of this paper is to present a typology of neutrality of money and to discuss all of its types. We focus on the dynamic neutrality, which is often identified with neutrality of money and is the most relevant for the monetary policy, and provide a comprehensive list of conditions that must be met for money to be neutral from the dynamic point of view. For this purpose, we conduct an extensive literature review, including the history of economic thought and the theory of money strands of literature, and analyze the various economic schools’ views on the neutrality of money. We find that changes in the money supply are never neutral, even in the long term, and that the concept of dynamic neutrality arises from the incorrect application of the comparative equilibrium analysis to the dynamic market process, and from the replacing of methodological individualism with the studies of aggregates, such as the “general price level”. We therefore conclude, following Hayek and Morgenstern views, that progress in the theory of money will not occur before economists begin paying more attention to the impact of the growth of unevenly distributed money on the structure of relative prices and production, in the spirit of Cantillon’s analysis

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