We show that the presence of nominal non-indexed government debt could give rise to more than one equilibrium inflation rate. Conditions for this to occur are discussed in terms of ad hoc and micro-founded models. Solutions to the indeterminacy problem are examined; one solution is shown to be price indexation of debt instruments.
Add to Cart by clicking price of the language and format you'd like to purchase
Available Languages and Formats
|
Paperback
|
PDF
|
ePub
|
Mobi
|
English |
|
|
|
|
Prices in red indicate formats that are not yet available but are forthcoming.