Journal Article

Indexed bonds as an aid to monetary policy

Abstract: A measure of the publics expectation of inflation would assist the Fed in formulating monetary policy. In order to create such a measure, the U.S. Treasury could issue its debt in two forms: standard debt and debt indexed for inflation. The difference in yield on these two forms of debt would measure the publics expectation of inflation.

Keywords: Monetary policy; Treasury bonds; Indexation (Economics);

Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Economic Review

Publication Date: 1992

Volume: 78

Issue: Jan

Pages: 13-23