Sovereign Gold Bonds of Government of India – a risk factored evaluation
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Draft for discussion (email comments to tirumalakv@gmail.com)BriefUnconventional monetary instruments carry risks that needs to be quantified to help policymakers make an informed decision by allowing an objective cost-benefit analysis. This paper discusses Sovereign Gold Bonds (SGBs), a unique monetary instrument issued by the Government of India and quantifies the risk that the government bears while underwriting the guarantee on the future gold price. One way to quantify this...
