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A credible commitment to more inflation means that the expected return from a safe bond is lower in real terms.
During your search for other options, you need to understand that if someone offers you a "safe" bond investment but promises higher yields or interest, you will be increasing your risk.
In that case, however, the biggest losers will be the people that securities laws are meant to protect -- the individual investors who thought they were buying a safe bond but instead got stuck with bonds in a company that came up with a strategy that damaged their interests.
Those yields look fabulous in comparison with what you can get on a safe bond.
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These critics advocate discounting pension liabilities based on a low-risk rate of return, akin to one for a very safe bond.
This counts a dollar as a dollar whether it is a risky loan or a safe government bond.
Investors have been piling out of supposedly safe bond funds that have been a source of reliable returns in recent years, creating unexpected volatility in the markets.
Mr. Brunnermeier has nicknamed his low-risk bond the Esbie, for European safe bond.
This very safe bond is rated AA by Standard & Poor's because it receives top payment priority as a general obligation of the municipality.
Investors tiptoed back into stock mutual funds last week, according to the Investment Company Institute, but are still putting most of their cash into relatively safe bond funds.
Better to invest it in a mix of safe bonds, money market funds and the certificates of deposit that some 529s offer.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com