THE MONETARY NEUTRALITY AND ITS IMPLICATIONS UPON THE REAL ECONOMY
THE MONETARY NEUTRALITY AND ITS IMPLICATIONS UPON THE REAL ECONOMY

Summary/Abstract: The monetary neutrality considers the way the monetary decisions affect the real variables and implicitly the real economy both on short term and long run. Although early study of this problem is rooted in the '70s, the issue is studied also nowadays, as many works aim to test whether the long-term monetary neutrality occurs indeed at any time, in any circumstances and regardless of the area. This paper aims to analyse the answer to the following question: How do monetary changes affect the main macroeconomic variables, such as output, real wages and real interest rates?

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