Should Central Banks Target CPI Futures?

J. OF MONEY, CREDIT, AND BANKING, Vol. 28 No. 3, August 1997

Posted: 7 Apr 1997

See all articles by Tyler Cowen

Tyler Cowen

George Mason University - Department of Economics; George Mason University - Mercatus Center

Abstract

I consider recent proposals that the government should attempt to stabilize the nominal value of a CPI futures contract. Under a variety of conditions arbitrageurs will break the peg and bankrupt the central bank, the central bank ends up in a gaming problem with private traders, or the regime collapses into discretion.

JEL Classification: E52, E58, G13

Suggested Citation

Cowen, Tyler, Should Central Banks Target CPI Futures?. J. OF MONEY, CREDIT, AND BANKING, Vol. 28 No. 3, August 1997, Available at SSRN: https://ssrn.com/abstract=8382

Tyler Cowen (Contact Author)

George Mason University - Department of Economics ( email )

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George Mason University - Mercatus Center ( email )

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HOME PAGE: http://www.mercatus.org/scholars/tyler-cowen

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