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Inflation-linked bonds from a Central Bank perspective

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Author Info
Juan Angel Garcia () (Capital markets and Financial Structure Division, Directorate Monetary Policy, European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.)
Adrian van Rixtel (Capital markets and Financial Structure Division, Directorate Monetary Policy, European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.)

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Abstract

Inflation-linked bond markets have experienced significant growth in recent years. This growth is somewhat surprising, for inflation-linked bonds cannot be considered a financial innovation and their development has taken place in a period of historically low global inflation and inflation expectations. In this context, the purpose of this paper is twofold. First, it provides a selective survey of the key arguments for and against the issuance of inflation-linked debt, and some of the factors that help to understand their recent growth. Second, it illustrates the use of these instruments to better monitor investors’ inflation expectations and growth prospects from a central bank perspective.

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Publisher Info
Paper provided by European Central Bank in its series Occasional Paper Series with number 62.

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Length: 48 pages
Date of creation: Jun 2007
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Handle: RePEc:ecb:ecbops:20070062

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jacob Ejsing & Juan Angel García & Thomas Werner, 2007. "The term structure of euro area break-even inflation rates - the impact of seasonality," Working Paper Series 830, European Central Bank. [Downloadable!]
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