IDEAS home Printed from https://ideas.repec.org/a/prs/reveco/reco_0035-2764_1979_num_30_1_408452.html
   My bibliography  Save this article

The Nominal System : Linkage to the Quantity of Money or to Nominal Income

Author

Listed:
  • Benjamin Eden

Abstract

[eng] The nominal system : linkage to the quantity of money or to nominal income. . Under stable money supply, economic agents wish to employ money as a unit of account in future contracts ; we should therefore try to preserve the functions of nominal contracts in the presence of monetary disturbances. Thus it is erratic changes in monetary policy that should be neutralized (by means of linkage to the quantity of money or nominal incarne) rather than random changes in the rate of inflation (by means of indexation). [fre] Quand l'offre de monnaie est stable, les agents économiques veulent employer la monnaie comme unité de compte dans leurs contrats futurs ; par conséquent, H faudrait, quand il se produit des perturbations monétaires, préserver les contrats émis en termes nominaux. C'est pourquoi ce sont les changements irréguliers de la politique monétaire qui devraient être neurtalisés (par une sorte de liaison au stock de monnaie ou au revenu national) plutôt que les changements aléatoires du taux d'inflation (par le moyen de l'indexation).

Suggested Citation

  • Benjamin Eden, 1979. "The Nominal System : Linkage to the Quantity of Money or to Nominal Income," Revue Économique, Programme National Persée, vol. 30(1), pages 121-143.
    • Handle: RePEc:prs:reveco:reco_0035-2764_1979_num_30_1_408452
    DOI: 10.3406/reco.1979.408452
    Note: DOI:10.3406/reco.1979.408452
    as

    Download full text from publisher

    File URL: https://doi.org/10.3406/reco.1979.408452
    Download Restriction: Data and metadata provided by Persée are licensed under a Creative Commons "Attribution-Noncommercial-Share Alike 3.0" License http://creativecommons.org/licenses/by-nc-sa/3.0/
    File URL: https://www.persee.fr/doc/reco_0035-2764_1979_num_30_1_408452
    Download Restriction: Data and metadata provided by Persée are licensed under a Creative Commons "Attribution-Noncommercial-Share Alike 3.0" License http://creativecommons.org/licenses/by-nc-sa/3.0/
    File URL: https://libkey.io/10.3406/reco.1979.408452?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Joseph E. Stiglitz, 1974. "Incentives and Risk Sharing in Sharecropping," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(2), pages 219-255.
    2. Gray, Jo Anna, 1976. "Wage indexation: A macroeconomic approach," Journal of Monetary Economics, Elsevier, vol. 2(2), pages 221-235, April.
    3. Barro, Robert J, 1977. "Unanticipated Money Growth and Unemployment in the United States," American Economic Review, American Economic Association, vol. 67(2), pages 101-115, March.
    4. Robert A. Jones, 1975. "Price Uncertainty and the Use of Money as Standard of Deferred Payment," UCLA Economics Working Papers 067, UCLA Department of Economics.
    5. Liviatan, Nissan & Levhari, David, 1977. "Risk and the Theory of Indexed Bonds," American Economic Review, American Economic Association, vol. 67(3), pages 366-375, June.
    6. Jones, Robert A, 1976. "The Origin and Development of Media of Exchange," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 757-775, August.
    7. K. J. Arrow, 1964. "The Role of Securities in the Optimal Allocation of Risk-bearing," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 31(2), pages 91-96.
    8. Shavell, Steven, 1976. "Sharing Risks of Deferred Payment," Journal of Political Economy, University of Chicago Press, vol. 84(1), pages 161-168, February.
    9. Martin Neil Baily, 1974. "Wages and Employment under Uncertain Demand," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(1), pages 37-50.
    10. Azariadis, Costas, 1975. "Implicit Contracts and Underemployment Equilibria," Journal of Political Economy, University of Chicago Press, vol. 83(6), pages 1183-1202, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aizenman, Joshua & Frenkel, Jacob A, 1986. "Supply Shocks, Wage Indexation and Monetary Accommodation," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 18(3), pages 304-322, August.
    2. Benjamin Eden, 1981. "Competitive Price Adjustment and Linkage to the Money Supply," UCLA Economics Working Papers 203, UCLA Department of Economics.
    3. Leland B. Yeger, 1986. "The Significance of Monetary Disequilibrium," Cato Journal, Cato Journal, Cato Institute, vol. 6(2), pages 369-420, Fall.
    4. Axel Leijonhufvud, 1987. "Rational Expectations and Monetary Institutions," International Economic Association Series, in: Marcello Cecco & Jean-Paul Fitoussi (ed.), Monetary Theory and Economic Institutions, chapter 3, pages 44-65, Palgrave Macmillan.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Romain Plassard, 2019. "From Disequilibrium to Equilibrium Macroeconomics: Barro and Grossman's Trade-off between Rigor and Realism," GREDEG Working Papers 2019-17, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    2. James F. Ragan & Bernt Bratsberg, 2000. "Un‐COLA: Why Have Cost‐of‐Living Clauses Disappeared from Union Contracts and Will They Return?," Southern Economic Journal, John Wiley & Sons, vol. 67(2), pages 304-324, October.
    3. John B. Taylor, 1983. "Rational Expectations Models in Macroeconomics," NBER Working Papers 1224, National Bureau of Economic Research, Inc.
    4. Plassard, Romain, 2021. "Barro, Grossman, and the domination of equilibrium macroeconomics," MPRA Paper 107201, University Library of Munich, Germany.
    5. Oscar Landerretche & Fernando Lefort & Rodrigo O. Valdés, 2002. "Causes and Consequences of Indexation: A Review of the Literature," Central Banking, Analysis, and Economic Policies Book Series, in: Fernando Lefort & Klaus Schmidt-Hebbel & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Serie (ed.),Indexation, Inflation and Monetary Policy, edition 1, volume 2, chapter 2, pages 019-064, Central Bank of Chile.
    6. Antoine Martin & Cyril Monnet, 2000. "When should labor contracts be nominal?," Working Papers 603, Federal Reserve Bank of Minneapolis.
    7. Marco Guerrazzi & Pier Giuseppe Giribone, 2022. "The dynamics of working hours and wages under implicit contracts," Bulletin of Economic Research, Wiley Blackwell, vol. 74(4), pages 1075-1094, October.
    8. repec:eee:labchp:v:2:y:1986:i:c:p:789-848 is not listed on IDEAS
    9. Minford, Patrick & Le, Vo Phuong Mai, 2006. "Calvo Contracts - Optimal Indexation in General Equilibrium," CEPR Discussion Papers 5616, C.E.P.R. Discussion Papers.
    10. Le, Vo Phuong Mai & Minford, Patrick, 2007. "Optimising indexation arrangements under Calvo contracts and their implications for monetary policy," Cardiff Economics Working Papers E2007/7, Cardiff University, Cardiff Business School, Economics Section.
    11. Jean-Pascal Bénassy, 2006. "Dynamic models with non clearing markets," Working Papers halshs-00590433, HAL.
    12. repec:eee:labchp:v:3:y:1999:i:pb:p:2291-2372 is not listed on IDEAS
    13. Alogoskoufis, George & Malliaris, A.G. & Stengos, Thanasis, 2023. "The scope and methodology of economic and financial asymmetries," The Journal of Economic Asymmetries, Elsevier, vol. 27(C).
    14. John B. Taylor, 1982. "The role of expectations in the choice of monetary policy," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 47-95.
    15. Patrick Artus, 1985. "L'indexation des salaires : une optique de stabilisation macro-économique," Revue Économique, Programme National Persée, vol. 36(2), pages 291-320.
    16. Ronald G. Ehrenberg & Leif Danziger & Gee San, 1982. "Cost-of-Living Adjustment Clauses in Union Contracts," NBER Working Papers 0998, National Bureau of Economic Research, Inc.
    17. Jonathan B. Ratner & Jeff Frank, 1982. "Sectoral Labor Markets, the Long-Run Phillips Curve, and Implicit Contracts," Eastern Economic Journal, Eastern Economic Association, vol. 8(2), pages 127-136, Apr-Jun.
    18. Taylor, John B., 1999. "Staggered price and wage setting in macroeconomics," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 15, pages 1009-1050, Elsevier.
    19. Matthew B. Canzoneri & Anne C. Sibert, 1984. "The macroeconomic implications of labor contracting with asymmetric information," International Finance Discussion Papers 248, Board of Governors of the Federal Reserve System (U.S.).
    20. Douglas G. Waldo, 1980. "Sticky nominal wages and the optimal employment rule," International Finance Discussion Papers 155, Board of Governors of the Federal Reserve System (U.S.).
    21. Fischer, Stanley, 1977. "Wage indexation and macroeconomics stability," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 5(1), pages 107-147, January.
    22. Patrick Minford & Eric Nowell & Bruce Webb, 2003. "Nominal Contracting and Monetary Targets -- Drifting into Indexation," Economic Journal, Royal Economic Society, vol. 113(484), pages 65-100, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prs:reveco:reco_0035-2764_1979_num_30_1_408452. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Equipe PERSEE (email available below). General contact details of provider: https://www.persee.fr/collection/reco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.