Designing Indexed Units of Account

@inproceedings{Shiller1999DesigningIU,
  title={Designing Indexed Units of Account},
  author={Robert J. Shiller},
  year={1999}
}
An indexed unit of account is a unit of measurement defined using an index such as a consumer price index so that prices defined in terms of these units will automatically adjust to changing economic conditions. Evidence on sticky prices and money illusion, and evidence from countries (notably Chile) that have created indexed units of account, suggests that creating such units is an important policy option for governments in countries with unstable price levels. A model is given that shows the… CONTINUE READING