The policy anticipation hypothesis and the expected inflation hypothesis: some new evidence using index linked bonds

D. A. Peel, P. F. Pope, K. Paudyal

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Using price index linked and conventional bonds issued by the UK Government, estimates of expected inflation and the expected real interest rate are derived. These estimates are employed to investigate the relationship between components of the nominal interest rate and surprise monetary change. The empirical results support the expected inflation hypothesis rather than the policy anticipation hypothesis.

LanguageEnglish
Pages121-125
Number of pages5
JournalEconomics Letters
Volume34
Issue number2
DOIs
Publication statusPublished - 31 Oct 1990

Fingerprint

Expected inflation
Anticipation
Empirical results
Price index
Government
Surprise
Nominal interest rate

Keywords

  • index linked bonds
  • inflation
  • interest rate

Cite this

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abstract = "Using price index linked and conventional bonds issued by the UK Government, estimates of expected inflation and the expected real interest rate are derived. These estimates are employed to investigate the relationship between components of the nominal interest rate and surprise monetary change. The empirical results support the expected inflation hypothesis rather than the policy anticipation hypothesis.",
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The policy anticipation hypothesis and the expected inflation hypothesis : some new evidence using index linked bonds. / Peel, D. A.; Pope, P. F.; Paudyal, K.

In: Economics Letters, Vol. 34, No. 2, 31.10.1990, p. 121-125.

Research output: Contribution to journalArticle

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AU - Paudyal, K.

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N2 - Using price index linked and conventional bonds issued by the UK Government, estimates of expected inflation and the expected real interest rate are derived. These estimates are employed to investigate the relationship between components of the nominal interest rate and surprise monetary change. The empirical results support the expected inflation hypothesis rather than the policy anticipation hypothesis.

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