The tendency for the principle of money neutrality not to hold in the short
A) David Hume.
B) John Maynard Keynes.
C) Milton Friedman.
D) Robert Lucas.
E) none, all of the above were interested in this issue.

Question

Quizplus · Accepted Answer

All of the economists listed have contributed to discussions or theories where the principle of money neutrality does not hold in the short run, indicating their interest in the issue. David Hume and John Maynard Keynes explicitly discussed the non-neutrality of money in the short term. Milton Friedman, while often associated with the idea that money is neutral in the long run, acknowledged short-run fluctuations. Robert Lucas, through his work on rational expectations, also contributed to understanding how monetary policy can have real effects in the short run.

The Tendency for the Principle of Money Neutrality Not to Hold