This paper firstly discusses the impact of inflation on real output in different theoretical models and then investigates
this impact empirically in an economy facing persistent high inflation. We find some evidence of Sidrauski's (Am Econ Rev
57:534-544, 1967) superneutrality of money for Turkey in the long run. However, it seems that inflation affects real output
negatively in the short run. These results are more compatible with a class of utility functions in which real money balances
and consumption are perfect complements as Asako (Econometrica 51(5):1593-1596, 1983) elucidates.
Keywords:Inflation, Growth, Superneutrality
Forschungsbereich:Makroökonomie und öffentliche Finanzen