Reply To: This is more of a general question but …


Yes. Cantillon effects are usually invoked to demonstrate why money is non-neutral. In response to any increase in the money stock, the prices of some goods move up to a greater extent and some to a lesser extent and the pries of some goods move up sooner and some move up latter. These changes in prices then have effects on profits and losses and therefore, production. As a consequence, the pattern of incomes in the economy change.