Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/60890
Authors: 
Roush, Jennifer
Dudley, William
Ezer, Michelle Steinberg
Year of Publication: 
2008
Series/Report no.: 
Staff Report, Federal Reserve Bank of New York 353
Abstract: 
Several studies have shown that, ex-post, the issuance of Treasury Inflation-Protected Securities (TIPS) has cost U.S. taxpayers money. We propose that evaluations of the TIPS program be more comprehensive and focus on the ex-ante costs of TIPS issuance versus nominal Treasury issuance and, especially when these costs are negligible, the more difficult-to-measure benefits of the program. Our study finds that the ex-ante costs of TIPS issuance versus nominal Treasury issuance are currently about equal and that TIPS provide meaningful benefits to investors and policymakers.
Subjects: 
Inflation-indexed debt
Treasury Inflation-Protected Securities (TIPS)
liquidity premium
inflation risk premium
JEL: 
H63
G10
E6
Document Type: 
Working Paper

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