Contracts and Money
- 1 August 1997
- journal article
- Published by University of Chicago Press in Journal of Political Economy
- Vol. 105 (4) , 700-708
- https://doi.org/10.1086/262090
Abstract
Why are contracts not fully indexed? In a setting in which fully indexed contracts are feasible, the authors 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. Copyright 1997 by the University of Chicago.Keywords
This publication has 0 references indexed in Scilit: