Classical theory argues that money doesn’t affect real economic outcomes over long horizons. Growth, in this view, depends on productivity and structural factors. But empirical evidence shows that monetary shocks can leave long-lasting marks, especially when they reshape expectations or contract structures.

Neutrality is a useful framework, yet real monetary policy influences investment, resource allocation, and the pace of adjustment. The question isn’t whether money is neutral — it’s how long the effects last and through which channels they operate.