feature of the model is that the extent of bond indexation is determined endogenously in response to monetary policy as part … estimate is strongly sensitive on the upside. -- inflation targeting ; price-level targeting ; optimal indexation ; government …

percent or higher. Price indexation implies even larger deviations from long-run price stability. However, price stability …

through a generalization of the Calvo-type setting that allows the possibility of price indexation, i. e. prices may be … inflation on output is higher. In the extreme case without no price indexation at all (purely Calvo-type economy …