Reflection Around the Reality of Long-run concept: application to Money Neutrality

FAKHRI, ISSAOUI (2016): Reflection Around the Reality of Long-run concept: application to Money Neutrality.

Abstract

According to my own thought I can assume that Economists often use the concept of long-term, without knowing that the said concept is the moment in which the major crises trigger. When the optimistic replaces the economic pessimism, the short-terms are born and the economic agents reproduce their stupid behavior which consists on the purchase of future transactions by the fictional creation of the money. The time, at the time of crises, increases speed by trying to settle transactions that occurred in previous periods in differentiated time horizons Present / Future.

• Item Type: MPRA Paper
• Language: English
• Keywords: Time, Long run, money neutrality
• Subjects: E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E41 - Demand for Money; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit

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