IMF Staff papers : Volume 40 No. 2.

The relationship between the degree of wage indexation chosen by private agents and the degree of public debt indexation chosen by the government is examined. It is shown that the government is likely to increase public debt indexation in response to an increase in wage indexation. By contrast, high...

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Bibliographic Details
Corporate Author: International Monetary Fund. Research Dept
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 1993.
Series:IMF Staff Papers; IMF Staff Papers ; No. 1993/001
Online Access:Full text available on IMF
Description
Summary:The relationship between the degree of wage indexation chosen by private agents and the degree of public debt indexation chosen by the government is examined. It is shown that the government is likely to increase public debt indexation in response to an increase in wage indexation. By contrast, higher public debt indexation has an ambiguous effect on wage indexation. In equilibrium, wage and public debt indexation may be positively or negatively related. This relationship is analyzed in situations where the policymakers can precommit to policies and in those they cannot.
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Physical Description:1 online resource (256 pages)
Format:Mode of access: Internet
ISSN:1020-7635
Access:Electronic access restricted to authorized BRAC University faculty, staff and students