Optimal Indexation Of Government Bonds And Monetary Policy
DOWNLOAD
Download Optimal Indexation Of Government Bonds And Monetary Policy PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get Optimal Indexation Of Government Bonds And Monetary Policy book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page
Optimal Indexation Of Government Bonds And Monetary Policy
DOWNLOAD
Author : Michael C. Hatcher
language : en
Publisher:
Release Date : 2011
Optimal Indexation Of Government Bonds And Monetary Policy written by Michael C. Hatcher and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2011 with categories.
Using an overlapping generations model in which the young save for old age using indexed and nominal government bonds, this paper investigates how optimal indexation is influenced by monetary policy. In order to do so, two monetary policies with markedly different long run implications are examined: inflation targeting and price-level targeting. Optimal indexation differs significantly under the two regimes. Under inflation targeting, long-term inflation uncertainty is substantial due to base-level drift in the price level. Nominal bonds are thus a poor store of value and optimal indexation is relatively high (76 per cent). With price-level targeting, by contrast, long-term inflation uncertainty is minimal because the price level is trend-stationary. This makes nominal bonds a better store of value compared to indexed bonds, reducing optimal indexation somewhat (26 per cent). Importantly for these results, the model captures two imperfections of indexation (indexation bias and lagged indexation) that are calibrated to the UK case. -- optimal indexation ; government bonds ; inflation targeting ; price-level targeting
The Rationale And Design Of Inflation Indexed Bonds
DOWNLOAD
Author : Mr.Robert T. Price
language : en
Publisher: International Monetary Fund
Release Date : 1997-01-01
The Rationale And Design Of Inflation Indexed Bonds written by Mr.Robert T. Price and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 1997-01-01 with Business & Economics categories.
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.
Optimal Fiscal And Monetary Policy With Nominal And Indexed Debt
DOWNLOAD
Author : Michael T. Gapen
language : en
Publisher: International Monetary Fund
Release Date : 2003-11-01
Optimal Fiscal And Monetary Policy With Nominal And Indexed Debt written by Michael T. Gapen and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2003-11-01 with Business & Economics categories.
This paper highlights the importance of debt composition in setting optimal fiscal and monetary policy over short-run business cycles and in the long run. Nominal debt as state-contingent debt can be a significant policy tool to reduce the volatility of distortionary government policy, thereby reducing macroeconomic volatility while increasing equilibrium output and consumption. The welfare gain from using nominal debt to hedge against shocks to the government budget is as large as the welfare gain from the ability to issue debt.
Indexation And Maturity Of Government Bonds
DOWNLOAD
Author : Guillermo A. Calvo
language : en
Publisher:
Release Date : 1989
Indexation And Maturity Of Government Bonds written by Guillermo A. Calvo and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1989 with Debts, Public categories.
On The Relationship Between Inflation And Nominal Government Liabilities
DOWNLOAD
Author : E. W. M. T. Westerhout
language : en
Publisher:
Release Date : 1996
On The Relationship Between Inflation And Nominal Government Liabilities written by E. W. M. T. Westerhout and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1996 with Banks and banking, Central categories.
Monetary Policy And The Information Content Of Index Bond Prices
DOWNLOAD
Author : John F. Boschen
language : en
Publisher:
Release Date : 1982
Monetary Policy And The Information Content Of Index Bond Prices written by John F. Boschen and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1982 with categories.
Index Linked Government Bonds And The Efficiency Of Monetary Policy
DOWNLOAD
Author : Paul Beckerman
language : en
Publisher:
Release Date : 1978
Index Linked Government Bonds And The Efficiency Of Monetary Policy written by Paul Beckerman and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1978 with Bonds categories.
Optimal Management Of Indexed And Nominal Debt
DOWNLOAD
Author : Robert J. Barro
language : en
Publisher:
Release Date : 1997
Optimal Management Of Indexed And Nominal Debt written by Robert J. Barro and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1997 with Debts, Public categories.
A tax-smoothing objective is used to assess the optimal consumption of public debt with respect to maturity and contingencies. This objective motivates the government to make its debt payout contingent on the levels of public outlay and the tax base. If these contingencies are present, but asset prices of non-contingent indexed debt are stochastic, then full tax smoothing dictates an optimal maturity structure of the non-contingent debt. If the certainty-equivalent outlays are the same for each period then the government should guarantee equal real payouts in each period, that is, the debt takes the form of indexed consols. This structure insulates the government's budget constraint from unpredictable variations in the market prices of indexed bonds of various maturities. If contingent debt is precluded, then the government may want to depart from a consol maturity structure to exploit covariances among public outlay, the tax base, and the term structure of real interest rates. However, if moral hazard is the reason for the preclusion of contingent debt, then this consideration also deters exploitation of these covariances and tends to return the optimal solution to the consol maturity structure. The issue of nominal bonds may allow the government to exploit the covariances among public outlay, the tax base, and the rate of inflation. But if moral-hazard explains the absence of contingent debt, then the same reasoning tends to make nominal debt issue undesirable. The bottom line is that an optimal-tax approach to public debt favors bonds that are indexed and long term.
On The Relevance Or Irrelevance Of Public Financial Policy
DOWNLOAD
Author : Joseph E. Stiglitz
language : en
Publisher:
Release Date : 2010
On The Relevance Or Irrelevance Of Public Financial Policy written by Joseph E. Stiglitz and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2010 with categories.
This paper is concerned with delineating conditions under which public financial policies have no real and/or price effects. In the absence of intergenerational distribution effects, public financial policy is irrelevant:an increase in government debt (whether indexed or not), an exchange of anindexed bond for a non-indexed bond, or an exchange of a short term bond fora long term bond has neither real nor financial effects. We also describe changes in financial policy in which the supply of bonds are increased and the nominal interest rate increases, which have an effect on the rate of inflation, but no real effects. We examine the implications of price and wage rigidities and the existence of a non-interest bearing financial asset used for transactions purposes for the validity of these irrelevance theorems.In general, public financial policies have effects on intergenerational distribution; alternative financial policies have implications for the pattern of capital accumulation (an effect which was the center of the literature on money and growth) and on the sharing of risks among members of different generations. We examine the consequences of three alternative financial policies,a fixed supply of financial assets, a fixed price level, and a fixed real supply of government indebtedness; under some plausible conditions, the latter policy may provide for the least intergenerational variability inconsumption.
Indexation And Maturity Of Government Bonds
DOWNLOAD
Author : International Monetary Fund
language : en
Publisher: International Monetary Fund
Release Date : 1989-05-18
Indexation And Maturity Of Government Bonds written by International Monetary Fund and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 1989-05-18 with Business & Economics categories.
The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.