re Links and Linking
Noted with thanks
Noted with thanks
RPi was due to go over the next ten years (approx) anyway, and be replaced by CPIH. CPI was devised as an alternative to RPI for EU purposes and never intended to be used in the way it has been. There will always be two index's as the Government gives with the lower and takes with the higher. That is apart from when they award their own pay or pension increases.RPI will have its calculation changed so that it is the same as CPI.
I ploughed through that one at the weekend. I agree with you about the logic. Am less sure of some of the graphs, but there's plenty in there from Imperial College that I would have faith in.
Pension Funds! Yours and mine. Anyone who has a Defined Benefit or typical "Final Salary" ex-company scheme in fact. Or many more modern DC schemes too. Most of the former are already heavily invested in government lending via bonds (known as "gilts" - because the original loan certificates in the whatever century they started, were edged in gold). Still considered one of the "safest" investments there are. Partly because UK governments have never defaulted on repaying the loans. All those already issued over the last 50 years, many with durations of up to 40 or even 50 years before repayment, promise to pay annual interest (the "coupon") on the loan at a rate pegged to RPI. The total market for government bonds is in fact many times greater than company share ownership markets ("equities"). Just a lot less publicised. As you have to be pretty well heeled yourself to loan to governments. Hence the gilt markets are normally only open to institutions, not individuals.What I don’t understand is who has got any money for the country to borrow from?