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The use of index-linked pricing on the international basic commodity markets and its possible consequences from the Finnish consumer price level and trade balance


, : The use of index-linked pricing on the international basic commodity markets and its possible consequences from the Finnish consumer price level and trade balance. Maatalouden Taloudellisen Tutkimuslaitoksen TIEDONANTOJA 36(4): 15

This article reviews the index-linking of prices as a means of fighting the consequences of inflation. Some models of index-linking are indicated and the price effects on domestic prices are given. Despite the technical difficulties in tying commodity prices to certain indices there remains some uncertainty as to whether this would help the economic situation of the developing countries, which is one significant aim.

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