Testing for Long-Run Neutrality and Super Neutrality of Money in the Iranian Economy: Aggregate Level and Agricultural Sector

Abstract

Fisher-Seater's approach is applied to the Iran's economic data 2008 to test the long-Run neutrality and super neutrality of money during 1988-2008. Our results support the neutrality of M2 w real GDP and real agricultural output. For nominal agricultural output neutrality of M2 is strongly rejected. The result of neutrality for the nominal GDP varies depending on the unit root test. The results also showed that the super neutrality of M2 with respect to real GDP is confirmed.

Keywords

• agricultural sector
• gross domestic product
• fisher-seater's approach
• neutrality of money