Although clues about inflation expectations abound in financial markets, inflation-indexed securities would appear to be the most direct source of information about inflation expectations and real interest rates.2 Government securities whose realized yields depend on inflation, known on the Street as “linkers,” have become increasingly common in industrial countries, Japan being the latest nation to introduce an inflation-indexed government bond.
International and regional cooperation in this area is very important for the Central Bank of Curacao and Sint Maarten to promote financial stability in our monetary union and to strengthen our position as an international financial centre. Our Bank is currently a member of several international and regional organizations aimed at promoting financial stability.