Controlling Inflation : The Problem of Non-Indexed Debt.

We show that the presence of nominal non-indexed government debt could give rise to more than one equilibrium inflation rate. Conditions for this to occur are discussed in terms of ad hoc and micro-founded models. Solutions to the indeterminacy problem are examined; one solution is shown to be price...

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Korporativní autor: International Monetary Fund
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 1988.
Edice:IMF Working Papers; Working Paper ; No. 1988/029
On-line přístup:Full text available on IMF
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245 1 0 |a Controlling Inflation :   |b The Problem of Non-Indexed Debt. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 1988. 
300 |a 1 online resource (28 pages) 
490 1 |a IMF Working Papers 
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500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a We show that the presence of nominal non-indexed government debt could give rise to more than one equilibrium inflation rate. Conditions for this to occur are discussed in terms of ad hoc and micro-founded models. Solutions to the indeterminacy problem are examined; one solution is shown to be price indexation of debt instruments. 
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830 0 |a IMF Working Papers; Working Paper ;  |v No. 1988/029 
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