Marty Feldstein: America Cannot Afford to Hike Taxes at the End of This Year
Econ 1: Spring 2012: U.C. Berkeley: March 19, 2012 Labor Market Lecture Audio

Since the Inception of 10-Year TIPS Issues...

The interest rates on ten-year U.S Treasury inflation-indexed securities (constant-maturity series since its inception, auction-day rates beforehand) and the interest rate on the ten-year nominal Treasury bond minus the previous year's inflation rate:

FRED Graph  St Louis Fed 4

The conclusion I draw is that nobody was in the business of trying to arbitrage the TIPS rate until the Treasury began publishing its constant-maturity TIPS daily interest rate series. Which is cause and which is effect I leave as an exercise to the reader...

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