The Neutrality of Money and the Classical Dichotomy in Macroeconomics
Cuadernos de Economía, Vol. 25, No. 45, pp. 75-93, 2006
20 Pages Posted: 6 Jul 2007 Last revised: 30 Dec 2016
Date Written: November 30, 2006
One of the key topics dealt with in macroeconomics concerns the effect of nominal variables (particularly money) on real variables. This article presents a theoretical review from the point of view of the most representative schools regarding the neutrality of money and the classical dichotomy. These are aspects incurring great repercussions from monetary policy, determining the execution such policy, together with the position adopted in the discussion about rules and/or discretion.
Note: Downloadable document is in Spanish.
Keywords: macroeconomics, neutrality of money, monetary policy
JEL Classification: B22, E50
Suggested Citation: Suggested Citation