Indexed bonds as an aid to monetary policy
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.
Indexation of wages and retirement income in the United States
originally appeared in the Federal Reserve Bank of New York Quarterly Review, Autumn 1978
The concept of indexation in the history of economic thought
originally appeared in the Federal Reserve Bank of Richmond Economic Review, Nov/Dec 1974
Indexing inflation: remedy or malady?
originally appeared in the Federal Reserve Bank of Philadelphia Business Review, March 1975, p. 3-13
Inflation risk in the U.S. yield curve: the usefulness of indexed bonds
The inflation-indexed bonds the U.S. Treasury plans to issue will reduce the expected borrowing cost if the yield curve reflects a risk premium for inflation. In the United Kingdom, indexed bonds are also used to extract inflationary expectations and thus to guide monetary policy. The bonds will produce a more reliable measure of such expectations if the inflation risk premium is taken into account. We estimate such a risk premium for the United States by means of a two-factor affine-yield model of the term structure. The model allows both the inflation risk premium and real term premium to ...
Indexation: a reasonable response to inflation
Inflation-indexed bonds: how do they work?
In January 1997, the United States Treasury, after years of debate, issued its first inflation-indexed bonds. These securities differ from conventional bonds in that principal and interest payments are linked to a price index. Thus, the purchasing power of an investor's savings is protected from inflation. This article provides a simple description of the Treasury's new offering and discusses why indexed bonds may be useful to investors, the Treasury, and policymakers
The name is bond--indexed bond
Will the Treasury Department's new inflation-indexed bond prove to be the bond "with the Midas touch"?
Federal income tax reform in 1985: indexation
The case for and against indexation: an attempt at perspective