Westerlund, Joakim; Costantini, Mauro - Nationalekonomiska Institutionen, Ekonomihögskolan - 2006
Most econometric methods for testing the proposition of long-run monetary neutrality rely on the assumption that money and real output do not cointegrate, a result that is usually supported by the data. This paper argues that these results can be attributed in part to the low power of univariate...