neutrality of money

What is neutrality of money?

neutrality of money definition and meaning on Finance terms:
A basic economic principle stating that in the long run changes in the money supply only lead to changes in nominal variables but not in real variables. Changes in the money supply will therefore have no long-term effect on variables such as real output, unemployment or real interest rates. <

 

reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html

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