with a 50 basis point rise in the inflation indexed bond return differential in favor of the foreign country and an 50 … 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 …

The world's first known inflation-indexed bonds were issued by the Commonwealth of Massachusetts in 1780 during the … Revolutionary War. These bonds were invented to deal with severe wartime inflation and with angry discontent among soldiers in the U … to justify indexation …

model to postwar US data and compare consumption and portfolio rules with and without bond indexation, portfolio constraints …, and the possibility of investment in equities. We find that when indexed bonds are not available, inflation risk leads … investors to shorten their bond portfolios and increase their precautionary savings. This has serious welfare costs for …

Households participating in financial markets pay attention to inflation news when making their investment decisions …, even in an environment of mostly low and stable inflation. ETFs and open-ended mutual funds holding Treasury Inflation …-based inflation expectations measures increase. Changes in household survey expectations or in measures of inflation uncertainty do …

This paper estimates expected future real interest rates and inflation rates from observed prices of UK government … nominal and index-linked bonds. The estimation method takes account of imperfections in the indexation of UK index …-linked bonds. It assumes that expected log returns on all bonds are equal, and that expected real interest rates and inflation …

these securities represent the only true long-run hedge against inflation risk. CPI-linked bonds make possible the creation … inflation-protected retirement annuities. The introduction of index-linked bonds eliminates one of the main obstacles to the … indexation of benefits in private pension plans. A firm could hedge the risk associated with a long-term indexed liability by …