Abstract
In a recent paper, Spivak, Weinblatt and Zilberfarb claim that, when contracts are overlapping and uniformly distributed over time, indexation always increases the absolute value of inflation and its variability. However, it can be shown that this result depends on a peculiar and implausible assumption on the indexation scheme in this framework, i.e., that the wage in a sector is indexed on the price of the good produced in that sector. When wages are indexed on the general price level, it is found that the absolute value of inflation and its variability do not necessarily increase with the indexation degree.
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