Lilia Costabile refers to Von Mises' view that new money is injected = 
into the economy at particular points. It is, thus, not neutral in the = 
sense that all price ratios between goods remain constant. New money is = 
not distributed from Milton Friedman's helicopter. This is not an = 
Austrian invention. The idea of neutrality can be found in Hume, the = 
idea that new money is injected at particular points dates from the same = 
period: Cantillon gave a detailed exposition of the process, explaining = 
how it would influence interest rates (Cantillon 1964 pp. 212-23).  
The idea may date from the 18th century, the term 'neutral money' seems = 
to have been coined only in 1919, by the German economist L. von = 
Bortkiewicz (Koopmans 1933 p. 228, nt. 1). Wicksell used the term ' = 
neutral rate of interest', not yet 'neutral money'. 
It may be noted that even if money is neutral (in a comparative-statics = 
analysis, or in a proximate way), it need not be super-neutral. = 
Super-neutrality means that changes in the rate of money growth, and = 
thus changes in the rate of inflation, have no real effects. This is = 
hardly possible if inflation has an impact on the composition of = 
economic agents' portfolios. 
 
Hans Visser 
 
 
Cantillon, R. (1964), Essai sur la Nature du Commerce en G=E9n=E9ral, = 
ed. by H. Higgs, with an English translation,  Kelley, New York 1964. = 
First published in 1755. 
Koopmans,  J.G. (1933), 'Zum Problem des "Neutralen" Geldes', in F.A. = 
Hayek (ed.), Beitr=E4ge zur Geldtheorie, Vienna: Julius Springer.