Please use this identifier to cite or link to this item:
|Title:||Inﬂation-indexed bonds and nominal bonds : financial innovation and precautionary motives||Authors:||Kang, Minwook||Keywords:||Social sciences::Economic theory||Issue Date:||2019||Source:||Kang, M. (2019). Inﬂation-indexed bonds and nominal bonds : financial innovation and precautionary motives. Journal of Money, Credit and Banking, 52(4), 721-745. https://dx.doi.org/10.1111/jmcb.12609||Journal:||Journal of Money, Credit and Banking||Abstract:||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 precautionary saving motives. This result implies that ignoring precautionary motives would underestimate savers' welfare gain and overestimate borrowers' welfare gain from innovation on indexed bonds.||URI:||https://hdl.handle.net/10356/151242||ISSN:||1538-4616||DOI:||10.1111/jmcb.12609||Rights:||© 2019 The Ohio State University. All rights reserved.||Fulltext Permission:||none||Fulltext Availability:||No Fulltext|
|Appears in Collections:||SSS Journal Articles|
Updated on Oct 23, 2021
Items in DR-NTU are protected by copyright, with all rights reserved, unless otherwise indicated.