Andrés, Javier; López-Salido, J. David; Vallés, Javier - In: Economic Journal 116 (2006) 511, pp. 457-477
This article examines the role of money in a small-scale dynamic general equilibrium model of the euro zone estimated by maximum likelihood. The model allows for both intertemporal and intratemporal non-separability in preferences. We find, first, that real balances do not affect the marginal...