01752cas a2200241 a 4500 AALejournalIMF000695 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451941036 1018-5941 BD-DhAAL BD-DhAAL Jadresic, Esteban. Macroeconomic Performance Under Alternative Exchange Rate Regimes : Does Wage Indexation Matter? / Esteban Jadresic. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (35 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper reexamines the macroeconomic effects of wage indexation in an open economy under alternative exchange rate regimes. The main finding is that, once the lags in actual indexation rules are considered, wage indexation affects output behavior substantially less than posited in the previous academic literature. This result implies that the academic view that wage indexation makes a flexible exchange rate generally preferable is unwarranted and suggests that the choice of exchange rate regime with and without wage indexation depends on similar factors. The analysis also reveals that the net effects of wage indexation on macroeconomic stability are ambiguous. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1998/118 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/118/001.1998.issue-118-en.xml IMF e-Library