01751cas a2200241 a 4500 AALejournalIMF008097 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451848847 1018-5941 BD-DhAAL BD-DhAAL Guidotti, Pablo. Wage and Public Debt Indexation / Pablo Guidotti. Washington, D.C. : International Monetary Fund, 1992. 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 This paper examines the relationship between the degree of wage indexation chosen by private agents and the degree of indexation of the public debt. It is shown that the government is likely to respond to an increase in the degree of wage indexation by increasing the portion of the public debt that is indexed. By contrast, the effect of an increase in public debt indexation on the degree of wage indexation is ambiguous. In equilibrium, depending on the sources of shocks to the economy, the degree of wage indexation may be positively or negatively related to that of debt indexation. This relationship is analyzed both in situations where the policymakers are able to precommit policies and in those where precommitment is not possible. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1992/067 Full text available on IMF http://elibrary.imf.org/view/journals/001/1992/067/001.1992.issue-067-en.xml IMF e-Library