Inflation expectations and Real Return Bonds

Agathe Côté, Jocelyn Jacob, John Nelmes and Miles Whittingham
Additional contact information
Miles Whittingham: Bank of Canada, https://www.bankofcanada.ca/

Bank of Canada Review, 1996, vol. 1996, issue Summer, 41-53

Abstract: The existence of a market for Real Return Bonds in Canada provides a direct tool with which to measure market expectations of inflation by comparing the yields on these bonds with those on conventional Government of Canada long-term bonds. However, there are other factors besides inflation expectations that may affect the yield differential. After reviewing these factors, the authors note that they can lead to a potentially large bias in the level of inflation expectations. The changes in the differential over time may, nonetheless, be a good indicator of movements in long-run inflation expectations. Based on this measure, expectations of long-run inflation have declined since late 1994.

JEL-codes: E43 (search for similar items in EconPapers)
Date: 1996
References: Add references at CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
https://www.bankofcanada.ca/wp-content/uploads/2010/06/r963b.pdf full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bca:bcarev:v:1996:y:1996:i:summer96:p:41-53

Access Statistics for this article

More articles in Bank of Canada Review from Bank of Canada 234 Wellington Street, Ottawa, Ontario, K1A 0G9, Canada. Contact information at EDIRC.
Bibliographic data for series maintained by ().