Contracts and money

Boyan Jovanovic; Masako Ueda

doi:10.1086/262090

Contracts and money

Boyan Jovanovic, Masako Ueda

Research output: Contribution to journal › Article › peer-review

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 language	English (US)
Pages (from-to)	700-708
Number of pages	9
Journal	Journal of Political Economy
Volume	105
Issue number	4
DOIs	https://doi.org/10.1086/262090
State	Published - Aug 1997

ASJC Scopus subject areas

Economics and Econometrics

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10.1086/262090

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Contracts and money

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