TY  - BOOK
AU  - Ball,Laurence
AU  - Cecchetti,Stephen G.
ED  - National Bureau of Economic Research.
TI  - Wage Indexation and Time-Consistent Monetary Policy
T2  - NBER working paper series
PY  - 1989///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - April 1989; Hardcopy version available to institutional subscribers
N2  - This paper investigates the effects of wage indexation on the time-consistent level of inflation. Departing from previous work on time-consistent policy, we study a structural model of the economy. Indexation reduces the cost of inflation, which is inflationary, and steepens the Phillips curve, which is anti-inflationary. In most cases, the net effect is to raise inflation but also to raise welfare: the loss from higher inflation is outweighed by the gain from greater protection against inflation
UR  - https://www.nber.org/papers/w2948
UR  - http://dx.doi.org/10.3386/w2948
ER  -