The Rationale and Design of Inflation-Indexed Bonds

IMF Working Papers, January 1, 1997

Source details

Canonical URL

The Rationale and Design of Inflation-Indexed Bonds

Other formats

• Markdown version
• Structured JSON version
• Bundle manifest

Bibliographic details

• Authors: Robert T Price
• Published: January 1, 1997
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451842869.001

Summary

• Author: Robert T Price
• Date: January 1, 1997
• Core focus: Surveys debt management, monetary policy, and welfare arguments on the use of inflation-indexed bonds, and relates these to the experiences of various issuers.
• Also considers important design features of indexed bonds.

Major themes and substantive analysis

• Context:
  • A number of industrialized countries have recently offered inflation-indexed bonds.
  • Some members of another group of countries that had earlier adopted more comprehensive indexation in response to high inflation have taken steps to reduce the scope of indexation in their economies.
• Analytical scope:
  • Debt management implications of issuing inflation-indexed bonds.
  • Monetary policy interactions with indexed debt instruments.
  • Welfare arguments for and against the use of inflation-indexed bonds.
  • Empirical connections to the experiences of various issuers.

Design features considered

• The paper examines "important design features of indexed bonds" (phrase preserved exactly as in source).
• Keywords signaling design and technical considerations: coupon rate, cash flow, consumer price indexes, fixed price, indexed bond, secondary market, short-term debt, supply price, yield gap, equilibrium price, risk premium, inflation compensation, inflation expectation, price level, return on investment.

Subject coverage and keywords

• Subjects: Bonds, Consumer price indexes, Financial institutions, Inflation, Inflation-indexed bonds, National accounts, Prices, Return on investment.
• Keywords: Bonds, cash flow, Consumer price indexes, coupon rate, equilibrium price, fixed price, indexed bond, Inflation, inflation compensation, inflation country, inflation expectation, inflation risk premium, Inflation-indexed bonds, monetary policy, price level, Return on investment, risk premium, secondary market, short-term debt, South America, supply price, WP, yield gap.

Content in this bundle

• The Rationale and Design of Inflation-Indexed Bonds - WP/97/12
  • The Rationale and Design of Inflation-Indexed Bonds - WP/97/12 (Markdown version)
  • The Rationale and Design of Inflation-Indexed Bonds - WP/97/12 (PDF)