New evidence on long-run monetary neutrality
- Cuñado Eizaguirre, Juncal
- Gil Alaña, Luis Alberiko
- Pérez de Gracia, F.
ISSN: 1988-8767
Año de publicación: 2007
Número: 324
Tipo: Documento de Trabajo
Otras publicaciones en: Notas técnicas: [continuación de Documentos de Trabajo FUNCAS]
Resumen
This paper re-examines the issue of long-run monetary neutrality by using fractional integration and allowing for possible structural breaks in six countries. We use an extension of Fisher and Seater¿s (1993) reduced-form test recently proposed by Bae et al. (2005). The results show that long-run monetary neutrality holds for five countries when no structural breaks are taken into account, and for all countries if one break is allowed.