A Review of Monetary Neutrality Literature

40 Pages Posted: 9 Jul 2020

See all articles by Yanling Guo

Yanling Guo

Goethe University Frankfurt; Bundeswehr University Munich

Date Written: June 14, 2020


In this paper, I review some selected literature about or related to the monetary neutrality and show that specific aspects of the monetary (non-)neutrality are actually derived from the underlying welfare consideration and thus their validity or desirability depend on the current state and way of organising the economy. On the other hand, the spirit of the monetary neutrality, namely the success of financial innovations should be measured in the success of real business and that market is the default solution and the government only intervenes if necessary, remains unchallenged.

Keywords: Monetary Neutrality, Relative Prices

JEL Classification: B12, B13, B23, B26, B59, G21, G23, G24, G28, G29, G32

Suggested Citation

Guo, Yanling, A Review of Monetary Neutrality Literature (June 14, 2020). Available at SSRN: https://ssrn.com/abstract=3628634 or http://dx.doi.org/10.2139/ssrn.3628634

Yanling Guo (Contact Author)

Goethe University Frankfurt ( email )


Bundeswehr University Munich ( email )

Werner-Heisenberg-Weg 39
Neubiberg, 85577

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