Weder, Mark - In: Recherches économiques de Louvain 72 (2006) 2, pp. 195-204
<marquage typemarq="gras"/> High degrees of relative risk aversion induce indeterminacy in cashin- advance economies. This paper finds that Taylor-style policies can preempt such sunspot equilibria. Specific policy recommendations depend on the fundamentals of the economy, i.e. the empirically true value of coefficient of...
