Resumen de New evidence on long-run monetary neutrality

Juncal Cuñado Eizaguirre, Luis Alberiko Gil Alaña, F. Pérez de Gracia

• This paper re-examines the issue of long-run monetary neutrality by using fractional integration and allowing for possible structural breaks in six countries.

  We use an extension of Fisher and Seater¿s (1993) reduced-form test recently proposed by Bae et al. (2005). The results show that long-run monetary neutrality holds for five countries when no structural breaks are taken into account, and for all countries if one break is allowed.