[2] The market has grown dramatically since the British government began issuing inflation-linked Gilts in 1981.
As of 2019, government-issued inflation-linked bonds comprise over $3.1 trillion of the international debt market.
The relationship between coupon payments, breakeven daily inflation and real interest rates is given by the Fisher equation.
A rise in coupon payments is a result of an increase in inflation expectations, real rates, or both.
Germany, Canada, Greece, Australia, Italy, Japan, Sweden, Israel and Iceland also issue inflation-indexed bonds, as well as a number of Emerging Markets, most prominently Brazil.