yields on long maturity inflation - indexed bonds. This relationship can be interpreted as defining the fair value of the … exchange rate that will prevail in any model or real world economy in which inflation indexed bonds are traded. An advantage of … with a 50 basis point rise in the inflation indexed bond return differential in favor of the foreign country and an 50 …

environment with uncertain inflation, a nominal FRM has risky real capital value whereas an ARM has a stable real capital value … prefer an ARM. The paper also considers an inflation-indexed FRM, which removes the wealth risk of the nominal FRM without … mortgage indexation can be very large …

The price indexation of Social Security benefit payments has emerged in recent years as a flashpoint of debate in the …

The main arguments in favor and against nominal and indexed debt are the incentive to default through inflation versus … unexpected inflation are tempered by higher interest rates. We obtain that costs from inflation more than offset the benefits …

This paper empirically analyzes the Expectations Hypothesis (EH) in inflation-indexed (or real) bonds and in nominal … bonds in the US and in the UK. We strongly reject the EH in inflation-indexed bonds, and also confirm and update the … premium, or the break-even inflation risk premium, also varies over time. We argue that the time variation in real bond risk …

This paper explores the history of inflation-indexed bond markets in the US and the UK. It documents a massive decline … financial crisis of 2008. Breakeven inflation rates, calculated from inflation- indexed and nominal government bond yields … inflation-indexed yields and high short-term volatility of inflation-indexed bond returns do not invalidate the basic case for …