Descripción

Although indexation policies and practices are common in many markets and economies, their implications for market efficiency and price stabilization remain controversial. This book contributes to the literature on indexation and inflation by including nine articles that are at the research frontier on these issues. The scope of the articles ranges from specific topics—including the optimal management of indexed public debt and the consequences of wage indexation—to recent empirical evidence regarding indexation and the persistence of inflation. The authors look at specific indexation practices adopted in different markets in response to inflation, discuss the consequences of such practices for these markets, and analyze the relationship among indexation mechanisms, inflation persistence, and the outcome of stabilization programs.

Comentarios

"This volume includes a valuable collection of studies that apply general equilibrim models to a range of Chilean policy questions. These studies assess systematically a number of the innovative policies that have been introduced in Chile using a variety of methodological approaches. The compilation of the different approaches into one set of studies, moreover, illustrates a number of strengths and weaknesses of the different approaches. The collection will be very useful, therefore, for academics and policymakers not only with interests in Chile. But also with interests in general equilibrium analysis of other economies."

Gullermo A. Calvo, University of Maryland and Inter-American Development Bank

"This volume presents the current state of knowledge about the classic issues of indexation and inflation. It brings together work by top economist in both academia and central banks. The paper strike just the rigth balance between intellectual rigor and policy relevance. Any scholar or practitioner of monetary policy can learn a lot from this book."

Laurence Ball, Johns Hopkins University

"Indexation of wages, exchange rates, tax brackets, bonds, mortgages, rents -Chile, has had it all. Building on this rich experience, the volume edited by Lefort and Schmidt-Hebbel provides a state-of-the-art analysis of the macroeconomic causes and consequences if indexation. Inflation-targeting central bankers will want to read the chapters on how to carry out policy in an indexed environment. A very useful book"

Andrés Velasco, Harvard University