structure model of inflation and interest rates. Our empirical results indicate that TIPS yields contained a "liquidity premium …-varying inflation risk premium complicates the interpretation of the TIPS break even inflation rate (the difference between the nominal … inflation expectations implied by the model, lending support to the view that TIPS break even inflation rates are a useful proxy …

Treasury Inflation-Protected Securities (TIPS) are frequently thought of as risk-free real bonds. Using no … informational content of TIPS breakeven inflation, a widely-used proxy for expected inflation …

Mispricing between Treasury inflation linked bond and nominal bonds is an issue under attention. This paper examines …

Although inflation-linked bonds have many advantages, nominal bonds are the most important instrument to finance public … monetary policies more effective. This paper reconsiders this argument with a model that features an inflation risk premium in …, inflation-linked bonds always outperform nominal bonds. The case of commitment qualifies this result. Still, also commitment …