Long Run Neutrality and Superneutrality of Money: Aggregate and Sectoral Tests for Nicaragua

Frederick Wallace () and Gary L. Shelley
Additional contact information
Gary L. Shelley: East Tennessee State University

Macroeconomics from EconWPA

Abstract: The Fisher-Seater (1993) methodology is applied to Nicaraguan data to test for long run neutrality and superneutrality of money. Real GDP and real output in six broadly defined sectors are I(1), while the money supply is I(2). These orders of integration imply that money is neutral with respect to both aggregate and sectoral output. However, superneutrality is rejected for real GDP as well as for all six sectors. Results of the superneutrality tests suggest that inflation driven by money growth imposed real costs on the private sector while the government sector

Keywords: Monetary neutrality; superneutrality; Nicaragua (search for similar items in EconPapers)
JEL-codes: E (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mon
Date: Written 2004-02-02
Note: Type of Document - pdf; prepared on Windows2000; pages: 27
View list of references

Downloads: (external link)
http://129.3.20.41/eps/mac/papers/0402/0402004.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Access Statistics for this paper

More papers in Macroeconomics from EconWPA
Series data maintained by EconWPA ().