Which improves welfare more : A nominal or an indexed bond ? w
نویسندگان
چکیده
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.
منابع مشابه
Estimating Inflation Expectations Using French Government Inflation-indexed Bonds
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