Indexation makes inflation more persistent, IMF finds
Economists draw conclusions from IMF survey of 190 countries’ indexation practices
Indexation is associated with more persistent inflation, economists at the International Monetary Fund have found, based on a new global database.
IMF economists surveyed around 190 countries on their indexation practices for pensions, social assistance programmes, income tax thresholds and public sector wages.
Vybhavi Balasundharam, Arika Kayastha and Marcos Poplawski-Ribeiro find indexation impacts fiscal outcomes and is positively correlated with inflation persistence. They say practices
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