Supplement | HBS Case Collection | 2004 (Revised from original 2004 version)

Innovation at the Treasury: Treasury Inflation-Protection Securities (B)

by Kenneth A. Froot, Peter A. Hecht and Christopher Edward James Payton

Abstract

In 1997, the U.S. Treasury was deciding whether to proceed with a proposal to issue inflation-indexed bonds. This case explores the challenges facing innovation in the financial markets as the Treasury tries to determine whether to introduce Treasury Inflation-Protection Securities.

Keywords: inflation; innovation; Federal government; securities; Financial Markets; Inflation and Deflation; Financial Institutions; Government and Politics; Financial Instruments; Innovation and Invention;

Citation:

Froot, Kenneth A., Peter A. Hecht, and Christopher Edward James Payton. "Innovation at the Treasury: Treasury Inflation-Protection Securities (B)." Harvard Business School Supplement 204-113, August 2004. (Revised from original January 2004 version.)