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Irving Fisher long advocated inflation indexed bonds. I prove in the context of a multicommodity CAPM world that the … best welfare improving bond pays the minimum money needed to achieve the same utility, and not the minimum needed to buy an …
Persistent link: https://www.econbiz.de/10005587097
Irving Fisher long advocated inflation indexed bonds. I prove in the context of a multicommodity CAPM world that the … best welfare improving bond pays the minimum money needed to achieve the same utility, and not the minimum needed to buy an …
Persistent link: https://www.econbiz.de/10005761445
Persistent link: https://www.econbiz.de/10001774957
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We study Ramsey optimal fiscal policy under incomplete markets in the case where the government issues only long bonds of maturity N 1. We find that many features of optimal policy are sensitive to the introduction of long bonds, in particular tax variability and the long-run behaviour of debt....
Persistent link: https://www.econbiz.de/10013090818
Financial instruments indexed to the general price level are of great potential use to borrowers and lenders alike. But up until recently, they have been relatively scarce – in part because private borrowers dislike offering protection against inflation that they do not control. Since the...
Persistent link: https://www.econbiz.de/10013099191
inflation-linked bonds (ILB mispricing) in the G7 government bond markets, and extends the slow moving capital explanation of … which represents more than eight percent of the total size of the G7 inflation-linked bond markets. Furthermore, the index …-linked nominal bond trade generates positively-skewed risk-adjusted excess returns across all countries. The key new insight for the …
Persistent link: https://www.econbiz.de/10013089585