Consequently, they will not adjust production and the neutrality of money occurs even in the short-run.

Superneutrality of money is a stronger property than neutrality of money.

Keynes rejected neutrality of money both in the short term and in the long term.

However, based on sticky prices and other rigidities, the synthesis does not embrace the complete neutrality of money proposed by earlier new classical economists.

Neutrality of money is an important idea in classical economics and is related to the classical dichotomy.

Neutrality of money, the notion that a change in the supply of money in an economy has no tangible effects.

Lucas sought to explain the short term procyclicality of output and inflation (the "Phillips curve") while maintaining the neutrality of money assumption.

Abstracting from inevitable stochastic disturbances, the neutrality of money requires that output and employment should never deviate from their full employment values.

It also emphatically rejects the neutrality of money, believing instead that the money supply and its growth or decline are critical to the functioning of the economy.

Post-Keynesian economics and monetary circuit theory reject the neutrality of money, instead emphasizing the role that bank lending and credit play in the creation of bank money.

Post Keynesians not only reject the neutrality of money in the short-run, they also see money as an important factor in the long-run, a view other Keynesians dropped in the 1970s.

Keynes's biographer Robert Skidelsky writes that the post-Keynesian school has remained closest to the spirit of Keynes's work in following his monetary theory and rejecting the neutrality of money.

The model accounts for empirically observed short-run correlations between output and prices, but maintains the neutrality of money (the absence of a price or money supply relationship with output and employment) in the long-run.

The core of Post Keynesian belief is the rejection of three axioms that are central to classical and mainstream Keynesian views: the neutrality of money, gross substitution, and the ergodic axiom.

U.S. National Bureau of Economic Research member and International Monetary Fund chief economist Olivier Blanchard has said, there is no real evidence: "All the models we have seen impose the neutrality of money as a maintained assumption.

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, with no effect on real (inflation-adjusted) variables, like employment, real GDP, and real consumption.

Monetarism's policies and method of analysis lost influence among central bankers and academics, but its core tenets of the long-run neutrality of money (increases in money supply cannot have long-term effects on real variables, such as output) and use of monetary policy for stabilization became a part of the macroeconomic mainstream even among Keynesians.