A money supply able to affect the price level but not real output and employment. This view of money is challenged by NEO-KEYNESIAN economists, who argue that an increase in the money supply, by causing a shift in the LM curve, will bring down interest...

Economic policies with no real effects as they only bring about nominal changes in an...

In economics, neutrality of money is the idea that a change in the stock of money affects only nominal variables in the economy such as prices, wages and exchange rates, having no effect on real variables like GDP, employment, and consumption. It is an...