Price indexed contracts: Characteristics and history

Helgi Tómasson

Abstract



The aim of this paper is to review some historical facts and properties of price indexed contracts. Price indexation has a long history. The economist Fisher states that price indexed loans are an intersting and competetively priced option. Some characteristics of price indexed contracts are reported. A brief comparison of the return of price indexed Icelandic government bonds and Canadian price indexed government bonds is shown.

Keywords


Inflation-indexing; Fisher-equation; bonds; interestrates; longterm contracts.

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DOI: https://doi.org/10.13177/irpa.a.2011.7.2.2

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