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A Microeconomic Test of Money Neutrality

Walter Enders; Barry Falk

The Review of Economics and Statistics 1984

Conventional empirical studies of money neutrality have focussed on the response of aggregate economic measures to anticipated and unanticipated money supply shocks. The present paper uses data from the U.S. pork industry to test for money neutrality at the microeconomic level. The appeal of the pork industry stems largely from the homogeneity of the product we consider and the fact that the product is traded in what are essentially auction markets. We find that current unanticipated, but not anticipated, money supply shocks have real effects in the industry.

DOI
10.2307/1935991
Volume
66 (4)
Pages
666
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