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| Mark Weder |
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| ''Endogenous Monetary Growth Rules and Determinacy in Cash-in-Advance Models'' |
| ( 2004, Vol. 5 No.11 ) |
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| 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. |
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| Keywords: |
JEL: E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General
E3 - Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) |
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| Manuscript Received : May 15 2004 | | Manuscript Accepted : May 20 2004 |
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