Inflation is a dreaded word, the mere mention of which can shake the confidence of economists, investment bankers …, policy makers, government as well as investors alike. Sustained inflation makes all of us poorer in the long run. Thrift has … to keep up with runaway inflation. The introduction of Inflation Indexed Bonds in June this year is much awaited for the …

inflation on output is higher. In the extreme case without no price indexation at all (purely Calvo-type economy …This paper examines how price setting plays a key role in explaining the steady-state effects of inflation in a … through a generalization of the Calvo-type setting that allows the possibility of price indexation, i. e. prices may be …

Much of the opposition to indexation as a means of adapting to on going inflation arises from the view that indexation … association between indexation and inflation is in large part a consequence of the monetary and fiscal policies being followed by … deficits are in part financed through the printing of money. It is shown that all aspects of indexing -- wage indexation, bond …

Fleckenstein et al. (2014) document that nominal Treasuries trade at higher prices than inflation-swapped indexed bonds …, which exactly replicate the nominal cash flows. We study whether this mispricing arises from liquidity premiums in inflation …-indexed bonds (TIPS) and inflation swaps. Using US data, we show that the level of liquidity affects TIPS, whereas swap yields …