ARE TREASURY INFLATION PROTECTED SECURITIES REALLY TAX DISADVANTAGED?
نویسندگان
چکیده
منابع مشابه
Investing in Treasury Inflation Protected Securities
Inflation-protected securities are bonds with unique investment characteristics. These securities represent a relatively new type of financial asset in the United States, where the government first issued Treasury Inflation-Indexed Securities (also called Treasury inflation-protected securities, or TIPS) in January 1997. The TIPS market has experienced rapid growth: Its total value had climbed ...
متن کاملPricing Treasury Inflation Protected Securities and Related Derivatives using an HJM Model
This paper uses an HJM model to price TIPS and related derivative securities. First, using the market prices of TIPS and ordinary U.S. Treasury securities, both the real and nominal zero-coupon bond price curves are obtained using standard coupon-bond price stripping procedures. Next, a three-factor arbitragefree term structure model is fit to the time series evolutions of the CPI-U and the rea...
متن کاملInflation Aversion and the Optimal Inflation Tax
The optimal inflation tax is reexamined in the framework of dynamic second best economy populated by individuals with inflation aversion. A simple formula for the optimal inflation rate is derived. Different from the literature, it is shown that if the marginal excess burden of other distorting taxes approaches zero, Friedman’s rule for optimum quantity of money is not optimal, and the optimal ...
متن کاملThe Treasury Securities Market: Overview and Recent Developments
The market for U.S. Treasury securities is by many measures the largest, most active debt market in the world. At the end of September 1999, the amount of Treasury debt held outside federal government accounts totaled about $3.6 trillion, close to the amount of outstanding debt securities issued by all U.S. corporations combined.1 Moreover, enormous amounts of Treasury securities are traded eve...
متن کاملAvoiding the Inflation Tax
I study the effects of inflation on the purchasing behavior of buyers in an economy where money is essential for certain transactions (as in Lagos and Wright, 2005). I show that higher inflation induces buyers to search for transactions more intensively and buy goods of worse quality to avoid holding for a prolonged period of time a fast depreciating asset like money. The standard framework fai...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Financial Research
سال: 2006
ISSN: 0270-2592,1475-6803
DOI: 10.1111/j.1475-6803.2006.00195.x