The Central Bank of Iceland Working Paper "QMM: A steady state version", by Ásgeir Daníelsson, head of Research and Forecasting with the Economics Department of the Central Bank of Iceland, has been posted on this website. The paper attempts to determine whether there exists a balanced growth path that QMM will replicate and whether it will converge to this path.
The paper concludes that there is no such path and that the model therefore does not converge to it. It then examines which adjustments to QMM are required to produce a model for which there exists a realistic balanced growth path. The paper also studies some important variables in the Icelandic economy – capital output ratio, share of wage costs, real rate of interest, and equilibrium real exchange rate – and their calibration for QMM.
See as well: A page for CB's Working Papers