Economics

What Is The Advantage Of An Inflation Indexed Bond?

Over the life of the bond, an inflation-indexed bond protects both investors and issuers against the risk of inflation. 1 Indexed bonds, like traditional bonds, pay interest at regular intervals and refund the principal at maturity. What are some of the advantages of indexed bonds? Indexed bonds offer investors inflation-adjusted returns, or real interest rates […]

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How Monetary Policy Can Be Used To Control Inflation?

Governments can fight inflation by imposing wage and price limits, but this can lead to a recession and job losses. Governments can also use a contractionary monetary policy to combat inflation by limiting the money supply in an economy by raising interest rates and lowering bond prices. Another measure used by governments to limit inflation […]

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