Iscussion on the a?neutrality of moneya

The mark needs to be more than 65.


A central issue in monetary economics is whether money is neutral. What is meant by the a?neutrality of moneya?, and what is the position adopted on this issue by the main schools of macroeconomic thought? You should write about 2,000 words (no more) on this topic.

A very good discussion can be found in G.K.Shaw, Michael J. McCrostie & David Greenaway chapters 1 & 5 and Mervyn K.Lewis & Paul D.Mizen chapters 3, 5, 7 & 9.

An outstandingly clear explanation of Rational Expectations Theory (central to New Classical Macroeconomics) is in:

Shaw GK (1984)Rational Expectations: An Elementary Exposition Wheatsheaf: Brighton
You should discuss this topic using both the a?IS-LMa model and a?AD-ASa(aggregate demand-aggregate supply) analysis.

which means, througha?IS-LMa and a?AD-ASathose 2 models discuss the main schools of macroeconomici??traditional Keynesianism, monetarism, new classical macroeconomics, supply side macroeconomicsi?0 to anaylsis the neutrality of money.