My question is very similar to Serially Correlated Regressors.
None of the answers there answer the central point of the question. Is it at all a problem if independent variables, are serially correlated?
Literature deals with serial correlation of residuals, and the problems it poses, a lot. But I found no literature that deals with, or even speaks about serial correlation of regressors. That makes me feel it doesn't matter.
But need some expert to prove or illustrate it.
