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States, there is also evidence of an increased interest rate elasticity in M1 demand in the most recent years, presumably …
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rate elasticity of M1 demand. In fact, estimating a theoretically plausible and stable demand function for M1 in the euro … area is possible if a functional form of money demand allowing for an interest rate elasticity in size with the level of … elasticity in M1 demand in the most recent years, presumably associated with the transition to the new environment prevailing …
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Output gap estimates at the current edge are subject to severe revisions. This study analyzes whether monetary aggregates can be used to improve the reliability of early output gap estimates as proposed by several theoretical models. A real-time experiment shows that real M1 can improve output...
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