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

• المؤلف الرئيسي: Kang, Minwook
• مؤلفون آخرون: School of Social Sciences
• التنسيق: مقال
• اللغة: English
• منشور في: 2021
• الموضوعات: Social sciences::Economic theory; Inflation-indexed Bond; Precautionary Motive
• الوصول للمادة أونلاين: 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...