European Evidence on the Long-Run Superneutrality of Money

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Authors

DEEV Oleg HODULA Martin

Year of publication 2015
Type Article in Proceedings
Conference European Financial Systems 2015. Proceedings of the 12th International Scientific Conference
MU Faculty or unit

Faculty of Economics and Administration

Citation
web http://is.muni.cz/do/econ/sborniky/2015/EFS_2015_proceedings.pdf
Field Management and administrative
Keywords moeny superneutrality; SVAR
Description This article investigates the validity of the money superneutrality concept for the sample of 30 European economies. Using a structural vector autoregrese framework, we examine the long-run response of real output to a permanent inflation shock for each country. We find that for the majority of countries in our sample the long-run superneutrality concept is confirmed as the original increase/decrease in output growth fades in time. We also fail to proof the additional hypothesis that the exception to superneutrality validity is a group of countries with smaller in-sample inflation mean.
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