Wage and Public Debt Indexation /

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...

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Bibliographic Details
Main Author: Guidotti, Pablo
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 1992.
Series:IMF Working Papers; Working Paper ; No. 1992/067
Online Access:Full text available on IMF
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245 1 0 |a Wage and Public Debt Indexation /  |c Pablo Guidotti. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 1992. 
300 |a 1 online resource (34 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
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 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. 
538 |a Mode of access: Internet 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1992/067 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/1992/067/001.1992.issue-067-en.xml  |z IMF e-Library