The neutrality of money RBC critics note that reductions in money growth and inflation are almost always associated with periods of high unemployment and low output. RBC proponents respond by claiming that the money supply is endogenous: - Suppose output is expected to fall.Central bank reduces money supply in response to an expected fall in money demand.• The neutrality of money • RBC critics note that reductions in money growth and inflation are almost always associated with periods of high unemployment and low output. • RBC proponents respond by claiming that the money supply is endogenous: – Suppose output is expected to fall. Central bank reduces money supply in response to an expected fall in money demand