01841cas a2200253 a 4500 AALejournalIMF005749 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451872378 1018-5941 BD-DhAAL BD-DhAAL Roache, Shaun. Inflation Hedging for Long-Term Investors / Shaun Roache, Alexander Attie. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (37 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Long-term investors face a common problem-how to maintain the purchasing power of their assets over time and achieve a level of real returns consistent with their investment objectives. While inflation-linked bonds and derivatives have been developed to hedge the effects of inflation, their limited supply and liquidity lead many investors to continue to rely on the indirect hedging properties of traditional asset classes. In this paper, we assess these properties over different time horizons, in the context of a diversified portfolio. Using a vector error correction model, we find that effective short-run hedges, such as commodities, may not work over longer horizons and that tactical asset allocation could enhance investment returns following inflation surprises. Mode of access: Internet Attie, Alexander. IMF Working Papers; Working Paper ; No. 2009/090 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/090/001.2009.issue-090-en.xml IMF e-Library