Cite JOURNAL ARTICLE
Zinserhöhungen bei festverzinslichen Wertpapieren während einer schleichenden Inflation. Ausgleich für inflationsbedingte Realwertverluste?
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 93 (1973), Iss. 5 : pp. 567–585
Are increases in the interest rates of fixed-interest-bearing securities during a creeping inflation a compensation for losses of real value?
To answer the question, a „Laufzeitrealzinssatz“ has been developped indicating the average real interest rate that securities pay during the whole time of maturity with regard to re-investment of their yields. Starting from the calculation of such interest rates for German fixed-interest-bearing securities it has been pointed out that there is no general answer to the above-mentioned question. Five typical inflationary situations demonstrating price and yield developments have been differentiated. Considering the taxation, at least at four of those five situations a compensation of the loss caused by interest rises during inflation does not or only to a small extent take place