Alvarez, Fernando; Lippi, Francesco - C.E.P.R. Discussion Papers - 2011
" of money demand estimates as-well-as the stability of long-run interest-elastic money demand. … effect on impact, and its persistence, depend on the ratio of two parameters: the long-run interest rate elasticity of money … demand and the intertemporal substitution elasticity. At the same time, the model has completely classical long …