1.11415 Why Does Money Affect Output? A Survey by Olivier Jean Blanchard Number 453 June 1987 Digitized by the Internet Archive in 2011 with funding from Boston Library Consortium IVIember Libraries http://www.archive.org/details/whydoesmoneyaffeOOblan June 1987 Why Does Money Affect Output ? A Survey Olivier Jean Blanchard* * MIT and NBER. This will be chapter 19 of the forthcoming Handbook of Monetary Economics. I thank the NSF for financial support. I thank Larry Ball, Stan Fischer, Ben Friedman, Ben McCallum, Greg Mankiw, Danny Quah, David Romer, Julio Rotemberg and Larry Summers for many helpful discussions and suggestions. I^evvey MOV 2 1987 1 RECEIVED