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How #Inflation is crushing central banks.... #BankofEngland spotlight!  #RealEstate #GBP #Hedging live at 3.20pm PT 10.20pm UTC https://buff.ly/3RaVehh

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How inflation is Challenging Central Banks: Spotlight Bank of England🇬🇧

Inflation #Macro #GovernmentDebt #DebtGDP #RealEstate #InterestRates

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Anonymous

Is US debt also index-linked? I don't believe so, which means the Fed has a LOT more room to raise as DDB confirms here: https://www.youtube.com/watch?v=Wgl2FDiCeJI

Anonymous

Thanks for this James, it's something i've wondered about for a while. One of my concerns is that of the index linked debt - effectively the interest rates are not the only thing that effects government debt. If a quarter of all UK government debt is index-linked, then with CPI increasing massively, then so is the debt. It surely makes it harder to predict the level at which an interest rate tips a government into the 'Financial Armageddon' territory. It's then a balance between keeping interest rates low enough to keep the government debt service payment 'affordable', but at the same time keeping inflation rates low so that the index-linked debt does not increase too much.

Anonymous

apparently some US bonds are: https://en.wikipedia.org/wiki/Inflation-indexed_bond

Anonymous

Nice one. It would be interesting to know what % of their bond portfolio the various CBs hold of these inflation indexed bonds