Campbell, John Y.; Shiller, Robert J.; Viceira, Luis M. - National Bureau of Economic Research (NBER) - 2009
This paper explores the history of inflation-indexed bond markets in the US and the UK. It documents a massive decline … financial crisis of 2008. Breakeven inflation rates, calculated from inflation- indexed and nominal government bond yields … rates, bond risks, and liquidity explain the trends before 2008 and the unusual developments in the fall of 2008. Low …