Guerron-Quintana, Pablo A. - In: Journal of Monetary Economics 56 (2009) 2, pp. 255-266
A forward-looking model of the demand for money based on heterogeneous and sluggish-portfolio adjustment can simultaneously account for the low short-run and high long-run semi-elasticities reported in the literature. The parameter estimates from the model for the short-run and long-run interest...