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Review of Economics

Jahrbuch für Wirtschaftswissenschaften

Editor-in-Chief: Berlemann, Michael

Ed. by Haucap, Justus / Thum, Marcel

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Superneutrality of Money under Open Market Operations

Stefan Homburg
Published Online: 2016-04-07 | DOI: https://doi.org/10.1515/roe-2015-1003


Monetary policy is superneutral in an overlapping generations model. Previous authors have argued that superneutrality does not hold in such a setting. However, the standard results rely on the counter-factual premise of helicopter money and are overturned if money creation through open market operations is taken into account. This result suggests that a more realistic representation of monetary policy may generally be helpful.

Keywords: superneutrality; open market operations; seigniorage; monetary policy; overlapping generations

JEL: E43; E52; H55


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About the article

Published Online: 2016-04-07

Published in Print: 2015-12-01

Citation Information: Review of Economics, Volume 66, Issue 3, Pages 289–302, ISSN (Online) 2366-035X, ISSN (Print) 0948-5139, DOI: https://doi.org/10.1515/roe-2015-1003.

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