Dreger, Christian; Wolters, Jürgen - In: Empirica 43 (2016) 1, pp. 61-82
This paper examines the relevance of the Lucas critique for euro area money demand. Based on the money in the utility … times of policy shifts. A well defined equation for money demand is obtained. The results indicate that the evolution of M3 … is still in line with money demand. In the long run, inflation is affected by asset prices and detrended output. Our …