Should Central Banks Target CPI Futures?
J. OF MONEY, CREDIT, AND BANKING, Vol. 28 No. 3, August 1997
Posted: 7 Apr 1997
Abstract
I consider recent proposals that the government should attempt to stabilize the nominal value of a CPI futures contract. Under a variety of conditions arbitrageurs will break the peg and bankrupt the central bank, the central bank ends up in a gaming problem with private traders, or the regime collapses into discretion.
JEL Classification: E52, E58, G13
Suggested Citation: Suggested Citation
Cowen, Tyler, Should Central Banks Target CPI Futures?. J. OF MONEY, CREDIT, AND BANKING, Vol. 28 No. 3, August 1997, Available at SSRN: https://ssrn.com/abstract=8382
Tyler Cowen (Contact Author)
George Mason University - Department of Economics ( email )
4400 University Drive
Fairfax, VA 22030
United States
703-993-1130 (Phone)
703-993-1133 (Fax)
George Mason University - Mercatus Center ( email )
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Arlington, VA 22201
United States
HOME PAGE: http://www.mercatus.org/scholars/tyler-cowen
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