Stability and non-linear dynamics in the broad demand for money in Spain.
In this article we estimate a money demand function for broad money in Spain in the period 1978--1998. Stability tests indicate the existence of a stable money demand function in the long but not in the short run. Using recent nonlinear techniques, we find that such instabilities are caused by a non-linear adjustment of real balances towards a stable long-run equilibrium.
scientific article; zbMATH DE number 1857206