Template-Type:ReDIF-Paper 1.0  
Title:Testing Long-run Neutrality: Empirical Evidence for G7-Countries with Special Emphasis on Germany
Author-Name:Weber, Axel
Classification-JEL:E31, E43, E52
Keywords:unit roots, vector autoregressions, long-run, neutrality, superneutrality, 'Phillips-curve', 'Fisher-effect',
	'Lucas-critique'
Abstract:Modern neo-Keynesian, new classical, and real business cycle models typically differ in the degree to which they
	incorporate long-run or short-run neutrality propositions. Despite their importance, little firm international evidence on the
	validity of these neutrality hypotheses is available to date. The paper applies a bivariate VAR approach to test the long-run
	restrictions implied by a number of neoclassical neutrality propositions. The evidence from the G7-countries appears to be
	consistent with the long-run neutrality of money and the vertical Phillips-curve, but the data largely refute the long-run
	superneutrality of money and the 'Fisher-effect' of inflation on interest rates.
Length: pages
Creation-Date: 1994
Revision-Date: 1994-06
Handle: RePEc:bon:bonsfb:281