Hodrick, Robert James; Kocherlakota, Narayana; Lucas, … - National Bureau of Economic Research (NBER) - 1989
Early cash-in-advance models have the feature that the cash-in-advance constraint always binds, implying that the velocity of money is constant. Lucas (1984) and Svensson (1985) propose a change in information structure that potentially allows velocity to vary. By calibrating a version of these...