# Swap, inflation-indexed and sometimes also inflation swap (swap based on the cost of living (index))

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- Post ID: 591670
- Modified: 2023-07-25T21:12:35+00:00
- Language: en

## Definition

Agreement in which a counterparty A undertakes to counterparty B to make payments of a fixed amount in exchange for payments indexed to the rate of inflation. The payments can be made - at the maturity of the swap: inflation-linked zero-coupon swap or - annually during the life of the swap: inflation-linked swap with multiple payment. An inflation-linked zero-coupon swap expresses the inflation expectations of the parties involved and is therefore of great interest for forward-looking monetary policy. - See bond, index-linked, issue, indexed, haven, safe, index money, inflation buyer, inflation rate, expected, Mundell-Tobin effect, distress assets, zero-coupon bond, swap, two-pillar principle. - Cf. ECB Monthly Bulletin, September 2003, pp. 34 f. (explanatory notes), BaFin Annual Report 2012, p. 98 (questions about the permissibility of inflation swaps for insurance companies and pension funds). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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