Which improves welfare more: A nominal or an indexed bond?

Michael Magill and Martine Quinzii ()

Economic Theory, 1997, vol. 10, issue 1, pages 1-37

Abstract: 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.

JEL-codes: D52 E31 (search for similar items in EconPapers)
Date: 1997
Note: Received: July 31, 1995; revised version August 7, 1996
View citations in EconPapers

Downloads: (external link)
http://link.springer.de/link/service/journals/00199/papers/7010001/70100001.pdf (application/pdf)
http://link.springer.de/link/service/journals/0019 ... 10001/70100001.ps.gz (application/postscript)
Access to the full text of the articles in this series is restricted

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:spr:joecth:v:10:y:1997:i:1:p:1-37

Ordering information: This journal article can be ordered from
http://link.springer.de/orders.htm

Access Statistics for this article

Economic Theory is edited by Nichoals Yanneils

More articles in Economic Theory from Springer
Series data maintained by Christopher F Baum ().