Is money ‘neutral’? Is it just a veil over ‘real’ transactions? Or does it affect the level and composition of ‘real’ expenditure? Stephen Cecchetti and Enisse Kharroubi recently published an article which in a very net way shows that money is non-neutral (as it is closely related to credit). It’s not a veil. It’s part of the essence of our economy. The abstract:….Real-World Economics Review Blog
Cecchetti and Kharroubi on the non-neutrality of money
Merijn Knibbe
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