The Rationale and Design of Inflation-Indexed Bonds PDF Download
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Author: Mr.Robert T. Price
Publisher: International Monetary Fund
ISBN: 1451842864
Category : Business & Economics
Languages : en
Pages : 70
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Book Description
A number of industrialized countries have recently offered inflation-indexed bonds. Some members of another group of countries that had earlier adopted more comprehensive indexation in response to high inflation have taken steps to reduce the scope of indexation in their economies. This paper surveys debt management, monetary policy, and welfare arguments on the use of inflation-indexed bonds, and relates these to the experiences of various issuers. The paper also considers some important design features of indexed bonds.
Author: Mr.Robert T. Price
Publisher: International Monetary Fund
ISBN: 1451842864
Category : Business & Economics
Languages : en
Pages : 70
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Book Description
A number of industrialized countries have recently offered inflation-indexed bonds. Some members of another group of countries that had earlier adopted more comprehensive indexation in response to high inflation have taken steps to reduce the scope of indexation in their economies. This paper surveys debt management, monetary policy, and welfare arguments on the use of inflation-indexed bonds, and relates these to the experiences of various issuers. The paper also considers some important design features of indexed bonds.
Author: Yukinobu Kitamura
Publisher:
ISBN:
Category : Bonds
Languages : en
Pages : 42
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Book Description
Author: United States. Congress. House. Committee on Government Operations. Commerce, Consumer, and Monetary Affairs Subcommittee
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 204
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Book Description
Author: Yukinobu Kitamura
Publisher:
ISBN:
Category :
Languages : en
Pages : 30
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Book Description
Author: Fernando Lefort
Publisher:
ISBN:
Category : Indexation (Economics)
Languages : en
Pages : 332
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Book Description
Author: Christian-Oliver Ewald
Publisher:
ISBN:
Category :
Languages : en
Pages : 1
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Book Description
We consider a continuous time framework featuring a central bank, private agents and a financial market. The central bank's objective is to maximize a functional, which measures the classical trade-off between output and inflation over time plus income from the sales of inflation indexed bonds minus payments for the liabilities that the inflation indexed bonds produce at maturity. Private agents are assumed to have adaptive expectations. The financial market is modeled in continuous time Black-Scholes-Merton style and financial agents are averse against inflation risk, attaching an inflation risk premium to nominal bonds. Following this route, we explain demand for inflation indexed securities on the financial market from a no-arbitrage assumption and derive pricing formulas for inflation linked bonds and calls, which lead to a supply-demand equilibrium. Furthermore, we study the consequences that the sales of inflation indexed securities have on the observed inflation rate and price level. Similar as in Walsh (1995) we find that the inflationary bias is significantly reduced, and hence that markets for inflation indexed bonds provide a mechanism to reduce inflationary bias and increase central bank's credibility.
Author: Mr.Eduardo Borensztein
Publisher: International Monetary Fund
ISBN: 145197017X
Category : Business & Economics
Languages : en
Pages : 25
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Book Description
This paper seeks to revive the case for countries to self-insure against economic growth slowdowns by issuing GDP-indexed bonds. We simulate the effects of GDP-indexed bonds under different assumptions about fiscal policy reaction functions and their output effects and find that they could substantially reduce the likelihood that debt/GDP paths become explosive. The insurance premium would likely be small, because cross-country comovement of GDP growth rates is low and cross-country GDP growth risk is thus largely diversifiable for an investor holding a portfolio of GDP-indexed bonds. Potential obstacles to the emergence of a market for these bonds include the verifiability of GDP data, the trade-off between insurance and moral hazard, and the need for liquidity. The paper discusses institutional fixes and suggests an approach to attempting to start up a market.
Author: Mr. Alfred Schipke
Publisher: International Monetary Fund
ISBN: 151358278X
Category : Business & Economics
Languages : en
Pages : 52
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Book Description
China’s bond market is destined to play an increasingly important role, both at home and abroad. And the inclusion of the country’s bonds in global indexes will be a milestone for its financial market integration, bringing big opportunities as well as challenges for policymakers and investors alike. This calls for a good understanding of China’s bond market structure, its unique characteristics, and areas where reforms are needed. This volume comprehensively analyzes the different segments of China’s bond market, from sovereign, policy bank, and credit bonds, to the rapidly growing local government bond market. It also covers bond futures, green bonds, and asset-backed securities, as well as China’s offshore market, which has played a major role in onshore market development.
Author: John F. Boschen
Publisher:
ISBN:
Category :
Languages : en
Pages : 40
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Book Description
Author: Antúlio Neves Bomfim
Publisher:
ISBN:
Category : Inflation-indexed bonds
Languages : en
Pages : 40
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Book Description
