Stracca, Livio - In: Manchester School 71 (2003) 2, pp. 172-204
A remarkable development seen in recent years is the pronounced decline in euro area M1 velocity <i>vis-ý-vis</i> a moderate decline in short-term interest rates, which represent the most natural opportunity cost for M1, suggesting an increase in the interest rate elasticity of M1 demand. In fact,...