Miller, Stephen M.; Martins, Luis F.; Gupta, Rangan - Department of Economics, Faculty of Economic and … - 2014
Money demand specifications exhibits instability, especially for long spans of data. This paper reconsiders the welfare … cost of inflation for the US economy using a flexible time-varying cointegration methodology to estimate the money demand …. Finally, the interest elasticity of money demand shows substantial variability over our sample period. …