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Smithin, J. (1980). On the Sources of the Super-Neutrality of Money in the Steady-State, Working Paper 80-14. Department of Economics, McMaster University.

has been cited by the following article:

• TITLE: Money and Economic Growth Revisited: A Note

  AUTHORS: Eric Kam, John Smithin

  KEYWORDS: Monetary Super-Neutrality, Money and Growth, Rational Expectations, Real Interest Rate, Wealth Effect

  JOURNAL NAME: Theoretical Economics Letters, Vol.12 No.1, January 6, 2022

  ABSTRACT: In an important but neglected paper, Begg (1980) attempted to solve the puz-zle of monetary super-neutrality in the steady-state. Super-neutrality was shown to depend on two sufficient conditions, only one of which is necessary. Begg argued that a more general specification restores monetary non-super-neutrality. This note suggests an additional sufficient condition for super-neutrality. The demand for real balances must be modeled as a de-creasing function of the real interest rate. This has implications for models as-suming a steady-state. Harkness (1978) had already shown that the extra suf-ficient condition is a necessary condition for existence.