UK Indexed Gilts: A Case Study of Financial Indexation

  • Charles Goodhart

Abstract

What change of market practice has a whole series of the world’s greatest economists, such as Jevons, Marshall, Irving Fisher, Keynes and Milton Friedman, virtually unanimously recommended; a change which practical men in authority, notably Central Bank Governors, have generally firmly resisted as far as they could and have only adopted with the utmost reluctance? The answer is a move to index contracts, especially long-term contracts, for example wages, tax brackets and financial contracts.

Keywords

Income Explosive Expense OECD Milton 

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Notes

  1. 2.
    J. Tobin and W. Buiter, ‘Fiscal and monetary policies, capital formation, and economic activity’, chapter 11 in J. Tobin, Essays in Economics (Cambridge, Mass: MIT Press, 1982 ).Google Scholar
  2. 5.
    B. McCallum, ‘On “real” and “sticky-price” theories of the business cycle’, Journal of Money, Credit and Banking, vol. 18,no. 4, November 1986, pp. 409–10.CrossRefGoogle Scholar
  3. 20.
    C. Goodhart, ‘The economics of “Big Bang”’, Midland Bank Review, Summer 1987, pp. 6–15.Google Scholar

Copyright information

© Edward P. M. Gardener 1990

Authors and Affiliations

  • Charles Goodhart

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