Méon, Pierre-Guillaume2018-05-282018-05-282004-12Méon, Pierre-Guillaume (2004). "A note on the welfare consequences of wage indexing in a stochastic economy". Portuguese Economic Journal, 3(3):179-1871617-982X (print)1617-9838 (online)http://hdl.handle.net/10400.5/15503This note surveys the welfare and real consequences of wage indexing in a stochastic economy whose monetary authority lacks credibility. It shows in a unified framework that those consequences might differ markedly depending on the nature and timing of the dominant disturbance in that economy. It finally provides a closed-form expression of the optimal level of wage indexing when all the shocks are taken into account.engMonetary policyCredibilityWage indexationjournal article10.1007/s10258-004-0028-9