Inflation-indexed bonds and nominal bonds : financial innovation and precautionary motives

• 主要作者: Kang, Minwook
• 其他作者: School of Social Sciences
• 格式: Article
• 語言: English
• 出版: 2021
• 主題: Social sciences::Economic theory; Inflation-indexed Bond; Precautionary Motive
• 在線閱讀: https://hdl.handle.net/10356/151242

This paper introduces a two-period monetary general equilibrium model with proportional transaction costs on nominal and inflation-indexed bonds. This paper demonstrates that financial innovation on indexed bonds causes equilibrium interest rates of the nominal bond to increase when agents have prec...