IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/43317.html
   My bibliography  Save this paper

Indexed Bonds

Author

Listed:
  • Rost van Tonningen, Nicholas A.
  • Sargent, John
  • Miller, Robin
  • Grady, Patrick

Abstract

This paper discusses the pros and cons of establishing a system of indexed bonds as a means of assisting employers in the event that governments (federal and/or provincial) should require them to adjust pension payments under the pension plans for inflation. The main body of this paper is divided into three parts. The introduction describes briefly the mechanics of indexed bonds, the way inflation may affect the cost of indexed pensions, and, hence, the reasons why indexed bonds are being considered as a means of offsetting such inflationary impacts. It also notes the role of pension funds in the financial system in Canada. The second part appraises the possible impact of indexed bonds on the economy generally, on financial markets, and on government operations. It also briefly reviews the experience abroad with indexed bonds. The third part deals with the conclusions derived from the discussion. In addition, there are two annexes. One of these provides an estimate of the possible demand for and supply of indexed bonds. The other comments on the risk that with indexed bonds, public debt servicing might become less predictable.

Suggested Citation

  • Rost van Tonningen, Nicholas A. & Sargent, John & Miller, Robin & Grady, Patrick, 1979. "Indexed Bonds," MPRA Paper 43317, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:43317
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/43317/1/MPRA_paper_43317.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    indexed bonds; government debt; macroeconomic stability;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:43317. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.