The Rationale and Design of Inflation-Indexed Bonds

Author/Editor:

Robert T Price

Publication Date:

January 1, 1997

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 1997/012

Subject:

Bonds Consumer price indexes Financial institutions Inflation Inflation-indexed bonds National accounts Prices Return on investment

English

Publication Date:

January 1, 1997

ISBN/ISSN:

9781451842869/1018-5941

Stock No:

WPIEA0121997

Pages:

69

Please address any questions about this title to publications@imf.org