When and Where Is It Cheaper to Issue Inflation-Linked Debt?

I compare direct issuance costs of inflation-linked versus nominal government debt (the liquidity premium versus the inflation risk premium, respectively) in developed countries. On average, it is cheaper to issue nominal debt at medium maturities (5-10 years) and inflation-linked debt at long maturities (20- years). Issuance costs are approximately equal for maturities in between. Inflation-linked debt had been cheapest to issue in the years just before and immediately after the Great Recession. Inflation-linked debt is cheaper to issue in countries with older inflation-linked debt programs, higher proportions of inflation-linked debt, and more counter-cyclical inflation