Inflation‐Indexed Bonds and Nominal Bonds: Financial Innovation and Precautionary Motives
构建两期货币一般均衡模型，分析通胀指数债券创新如何影响名义债券利率，发现预防性储蓄动机会使利率上升，忽视该动机将误判福利效应。
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.