Contracts and money

Boyan Jovanovic, Masako Ueda

Research output: Contribution to journalArticlepeer-review

14 Scopus citations

Abstract

Why are contracts not fully indexed? In a setting in which fully indexed contracts are feasible, we find that when price-level data are gathered with delay, these contracts are not renegotiation-proof. The contracts that replace them entail a lower level of welfare for the parties to that contract. They also imply that real variables respond to nominal shocks.

Original languageEnglish (US)
Pages (from-to)700-708
Number of pages9
JournalJournal of Political Economy
Volume105
Issue number4
DOIs
StatePublished - Aug 1997

ASJC Scopus subject areas

  • Economics and Econometrics

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