Coenen, Günter; Vega-Croissier, Juan Luis - 2021
In this paper, an empirically stable money demand model for M3 in the euro area is constructed. Starting with a … short-term nominal interest rates, (ii) the long-term real interest rate, and (iii) a long-run demand for broad money M3 …. There is evidence that the determinants of M3 money demand are weakly exogenous with respect to the long-run parameters …