IDEAS home Printed from https://ideas.repec.org/p/fip/fedfap/94-10.html
   My bibliography  Save this paper

Hedging inflation and income risks

Author

Listed:
  • Robert J. Shiller

Abstract

This paper describes potential new markets for long-term inflation risk, and shows the relationship such markets would have to other potential new markets, markets for long-term claims on income aggregates. One inflation-risk market which would be very useful is a market for long-term (or perpetual) claims on a cash flow of constant real value each period, a cash flow measured each period by an index of consumer prices. Such markets need not take the form of indexed government or corporate debt; it would be more natural to create futures-like markets for cash flows tied to an index and paid by shorts in the market. ; The potential use for such long-term inflation risk markets is put into perspective here by comparing the long-term risks to the real value of nominal claims to the long-term risks to national products and dividend incomes, using data on 54 countries 1950-90.

Suggested Citation

  • Robert J. Shiller, 1994. "Hedging inflation and income risks," Working Papers in Applied Economic Theory 94-10, Federal Reserve Bank of San Francisco.
  • Handle: RePEc:fip:fedfap:94-10
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    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:fip:fedfap:94-10. 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: Federal Reserve Bank of San Francisco Research Library (email available below). General contact details of provider: https://edirc.repec.org/data/frbsfus.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.