Which improves welfare more: A nominal or an indexed bond?

B-Tier
Journal: Economic Theory
Year: 1997
Volume: 10
Issue: 1
Pages: 1-37

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Economists have long argued that loan contracts should be indexed to remove the risks arising from fluctuations in the purchasing power of money: indexation however while eliminating one risk, substitutes another, arising from fluctuations in relative prices of goods. We present a theoretical framework which permits the relative merits of a nominal versus an indexed bond to be assessed in a general equilibrium setting.

Technical Details

RePEc Handle
repec:spr:joecth:v:10:y:1997:i:1:p:1-37
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25