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ARE VARIABLE ANNUITIES THE ANSWER TO INFLATION?
Author(s) -
McCracken Paul W.
Publication year - 1956
Publication title -
the journal of finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 18.151
H-Index - 299
eISSN - 1540-6261
pISSN - 0022-1082
DOI - 10.1111/j.1540-6261.1956.tb00697.x
Subject(s) - variable (mathematics) , annuity , citation , computer science , inflation (cosmology) , actuarial science , economics , library science , law , political science , mathematics , pension , life annuity , physics , theoretical physics , mathematical analysis
THE MAJOR REASON for interest in variable annuities stems from the possibility that they would provide one answer to the problem of hedging against price inflation. Two questions are, of course, involved. Would these, in fact, provide a reasonably adequate hedge against inflation? Is the prospect for chronic price inflation serious enough to warrant this substantial departure from financial orthodoxy? I