Endogenous Monetary Growth Rules and Determinacy in Cash−in−Advance Models
نویسنده
چکیده
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. This paper was written while I was a DFG Heisenberg Fellow. I would like to thank the Federal Reserve Bank of San Francisco for its hospitality. Citation: Weder, Mark, (2004) "Endogenous Monetary Growth Rules and Determinacy in Cash−in−Advance Models." Economics Bulletin, Vol. 5, No. 11 pp. 1−7 Submitted: May 15, 2004. Accepted: May 20, 2004. URL: http://www.economicsbulletin.com/2004/volume5/EB−04E50003A.pdf
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