Indexed Bonds as an Aid to Monetary Policy

FRB Richmond Economic Review, Vol. 78, No. 1, January/February 1992, pp. 13-23

11 Pages Posted: 7 Nov 2012

See all articles by Robert L. Hetzel

Robert L. Hetzel

Federal Reserve Banks - Federal Reserve Bank of Richmond

Abstract

A measure of the public’s expectation of inflation would assist the Fed in formulating monetary policy. In order to create such a measure, the U.S. Treasury could issue its debt in two forms: standard debt and debt indexed for inflation. The difference in yield on these two forms of debt would measure the public’s expectation of inflation.

Suggested Citation

Hetzel, Robert L., Indexed Bonds as an Aid to Monetary Policy. FRB Richmond Economic Review, Vol. 78, No. 1, January/February 1992, pp. 13-23. Available at SSRN: https://ssrn.com/abstract=2125092

Robert L. Hetzel (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Richmond ( email )

P.O. Box 27622
Richmond, VA 23261
United States

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