Template-Type: ReDIF-Paper 1.0
Title: Which Improves Welfare More: Nominal or Indexed Bond?
Author-Name: Michael Magill
Author-Name: Martine Quinzii
Classification-JEL: 
Keywords: 
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, sustitutes another, arising
 from fluctuations in relative prices of goods. We present a theoretical
 framework which permits the relative merits of a nominal versus and an
 indexed bond to be assessed in a general equilibrium setting.
Series:	Sonderforschungsbereich 303, University of Bonn, Germany
Length: 43 pages
Creation-Date: 1995-12
Handle: RePEc:bon:bonsfa:511