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NEUTRALITY MONEY [1 record]

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Record 1 2010-04-27

English

Subject field(s)
  • Currency and Foreign Exchange
  • Coins and Bank Notes
CONT

... neutrality of money is the idea that a change in the stock of money affects only nominal variables in the economy such as prices, wages and exchange rates but has no effect on real (inflation-adjusted) variables, like employment, real GDP [gross domestic product], and real consumption. It is an important idea in classical economics and is related to the classical dichotomy. Money neutrality holds that the central bank does not affect the real economy (e.g., the number of jobs, the size of real GDP, the amount of real investment) by printing money.

French

Domaine(s)
  • Politique monétaire et marché des changes
  • Pièces de monnaie et billets de banque
CONT

[...] incapacité de la monnaie à influencer les variables réelles.

Spanish

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