Sistema de indexación para salarios en dólares

Uruguay 2003-2022

Abstract

This article analyzes the application of two alternative indexation systems for wages established in foreign currency. In particular, it evaluates their impact on the average level and the variance of the purchasing power of remunerations, in different scenarios of behavior of prices and the exchange rate. It concludes that, under the most realistic assumptions, the indexation based on the differential between inflation and depreciation of the national currency with respect to the foreign currency, without adjusting the volatility of the variables, is the most adequate to minimize the volatility of real wages.