The invention provides a method of electrical artefact compensation in measurement of a neural response. The neural response is evoked by a first stimulus, after which a compensatory stimulus is applied in order to counteract a stimulus artefact caused by the first stimulus. The invention also provides for short circuiting the stimulating electrode subsequent to the first stimulus. A system for implementing such steps is also provided. The invention may be of application in measurement of physiological responses, including neural responses and in particular a neural response of the auditory nerve.
