The finance ministry declared the buyback of Inflation Indexed Bonds (IIBs) linked to the wholesale price index (WPI).
The Reserve Bank of India (RBI) had recommended to the finance ministry that the government buy back Inflation Indexed Bonds (IIBs) linked to the wholesale price index (WPI), reasoning that this is no longer the most vital measure of prices.
Or the risk of investing in long-term inflation indexed bonds from the perspective of a short-horizon investor?
Specifically, our research finds that the yield term spread (the difference between the yield on a long-dated bond and a short-dated bond) on inflation indexed bonds forecasts positively the return on inflation-indexed bonds, just like the yield term spread on nominal bonds forecasts positively the return on nominal bonds.
The RBI said that in consultation with Government of India, it has decided to launch
Inflation Indexed Bonds (IIBs).
These could be in the form of
inflation indexed bonds or inflation indexed national security certificates.
10) More specifically, our theory is that
inflation indexed bonds, as a component of wealth and via the Pigou effect, cause aggregate demand to become more inelastic with respect to the general price level.
Treasury began the quarterly issuance of
inflation indexed bonds, called Treasury Inflation Protection Securities (TIPS).
One sign that it's benign is the fact that the Treasury introduced
inflation indexed bonds, called TIPS--Treasury Inflation Protection Securities--which in the current environment are generating a lot of interest.
Thus, the interest rate will remain fixed, but the amount of each interest payment will vary with the CPI-U Notice 96-51(34) explains the content of planned proposed and temporary regulations that will apply to all
inflation indexed bonds.
For instance, in the financial sector, the announcement of
inflation indexed bonds would serve as a hedge against inflation and would wean individuals away from purchase of gold.
He also introduces a new way to calibrate forward looking central bank policy rules using financial market data on real interest rates on
inflation indexed bonds and breakeven inflation rates instead of the instrumental variable, GMM approach introduced in his earlier work.
