One of the common reasons given for issuing inflation-indexed government securities is to avoid paying a risk premium on nominal, non-indexed securities to compensate investors for uncertain inflation. Paradoxically, a number of countries began issuing inflation indexed bonds during a period of...

Although inflation-linked bonds have many advantages, nominal bonds are the most important instrument to finance public debts throughout the world. One explanation that the literature has offered is that nominal bonds make countercyclical monetary policies more effective. This paper reconsiders...

The Covid-19 Pandemic and policy response rattled the USTreasury markets. Conventional US Treasuries, inflation adjustedUS Treasuries, and the relationship between the two developed inways such that ignoring changes in real interest rates yielded dis-torted inflation expectations estimates....