Contracts and Money
JOURNAL OF POLITICAL ECONOMY, Vol. 105, No. 4 (August 1997)
Posted: 1 Sep 1997
There are 2 versions of this paper
Contracts and Money
NBER Working Paper No. w5637
Number of pages: 28
Posted: 04 Aug 2000
Last Revised: 29 May 2022
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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.
JEL Classification: D82, D39, E24
Suggested Citation: Suggested Citation
Jovanovic, Boyan and Ueda, Masako, Contracts and Money. JOURNAL OF POLITICAL ECONOMY, Vol. 105, No. 4 (August 1997), Available at SSRN: https://ssrn.com/abstract=10751
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