The non-neutrality of money: a response to Dr. Humphrey
DOI:
https://doi.org/10.52195/pm.v8i2.252Abstract
This article answers Dr. Humphrey contention on the similarities between monetarist and Austrian approaches to the neutrality of money. Monetarists at most only concentrate on short term non neutrality while Austrians base their analysis in short, medium and long term non neutrality. For the more, monetarists lack a true theory of capital that could let then understand thet even with flexible markets money would not be neutral in the short term.
Key words: Economic cycles, neutrality of money, short and long term effects of money, capital theory.
JEL Classification: B53, B49, D01, K13.
Resumen: El presente artículo contesta la tesis del Dr. Humphrey según la cual las diferencias entre austriacos y monetaristas son ficticias pues algunos de éstos también reconocieron los efectos distorsionadores del crecimiento monetario sobre los precios relativos. El artículo demuestra que la teoría austriaca considera que el dinero no es neutral ni a corto, ni a medio ni a largo plazo y ello contrasta con el enfoque monetarista que solo reconoce la no neutralidad a corto plazo y por razones equivocadas al carecer de una verdadera teoría del capital.
Palabras clave: Ciclo económico, neutralidad del dinero, corto plazo, largo plazo, teoría del capital.
Clasificación JEL: B53, B49, D01, K13.
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