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Monetary Neutrality

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PPGPortal > Home > Concept Dictionary > K, L, M > Monetary Neutrality
 

Monetary Neutrality 

The principle that changes in the money supply do not affect real economic variables in the long run.

(Peter Dungan, Toronto PPG1002H, and Mankiw, N. Gregory, Ronald Kneebone, Kenneth J. McKenzie and Nicholas Rowe. 2008. Principles of Macroeconomics, 4th Canadian ed. Toronto: Thomson Nelson.)

     

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