Persistent liquidity effects ad long-run money demand.
Bibliografía : páginas 105-107.
The model, 76 ; Approximate aggregation with segmented markets, 83 ; Velocity and money growth, 85 ; Interest rates with segmented markets, 88 ; A calibration of the model on the US data, 101 ; Concluding remarks, 104
We present a monetary model with segmented asset markets that implies a persistent fall in interest rates after a once-for-all increase in liquidity.