The Rationale and Design of Inflation-Indexed Bonds

Download or read book The Rationale and Design of Inflation-Indexed Bonds written by Mr.Robert T. Price and published by International Monetary Fund. This book was released on 1997-01-01 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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. This paper surveys debt management, monetary policy, and welfare arguments on the use of inflation-indexed bonds, and relates these to the experiences of various issuers. The paper also considers some important design features of indexed bonds.