Endogenous Monetary Growth Rules and Determinacy in Cash-in-Advance Models

Mark Weder

Economics Bulletin, 2004, vol. 5, issue 11, 1-7

Abstract: It is well known that a high degree of relative risk aversion induces equilibrium indeterminacy in cash-in-advance economies. I find that by endogenously adjusting the nominal money supply to output fluctuations, these equilibria can be effectively eliminated.

JEL-codes: E3 E5 (search for similar items in EconPapers)
Date: 2004-05-20
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