01730cas a2200241 a 4500 AALejournalIMF007386 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451845655 1018-5941 BD-DhAAL BD-DhAAL Crowley, Joe. The Effects of Forward-Versus Backward-Looking Wage Indexationon Price Stabilization Programs / Joe Crowley. Washington, D.C. : International Monetary Fund, 1997. 1 online resource (34 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 A standard open-economy model is used to show that price stabilization programs are more likely to succeed if labor contracts specify forward-looking wage indexation. Compared with contracts specifying backward-looking wage indexation or wages based on static expectations, such contracts will result in a greater reduction in inflation with lower output costs, smaller misalignment of real wages, smaller outflows of reserves, smaller disruptions caused by policy announcements, and a reduced impact of some shocks during price stabilization programs. These results are generally true whether or not capital is mobile and whether or not expectations are rational. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1997/038 Full text available on IMF http://elibrary.imf.org/view/journals/001/1997/038/001.1997.issue-038-en.xml IMF e-Library