Forecasting with money demand functions:
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Antonio Garcia-Ferrer; Alfonso Novales
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Article
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1998
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John Wiley and Sons
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English
⚖ 251 KB
Money demand functions have long been known to be frequently subject to structural change. Since their use for optimal monetary policy design is basically a forecasting exercise, it is crucial to analyse the eect of time instability on the quality of their forecasts. We discuss in this paper whether