Bonds are financial instruments that are used by the government to control the problems of prices in the market. Shervin Pishevar notes that the government will be experiencing challenges in adjusting the market by use of bonds because the financial instruments have been used for a more extended period to control the market. However, there is a perception that a significant number of bonds used in the market have lost their effectiveness.
There are several methods that the government can use to control the prices of products in the country. Shares and other financial instruments are useful, but bonds play a critical role in solving the increasing interests in the economy. Although a significant number of individuals might complain about the increasing costs of goods and services, it appears that the government will not have an opportunity to offer any feasible solution to the skyrocketing costs of commodities.
Many individuals don’t understand why the effectiveness of the bond market has changed within a short period. Shervin Pishevar, however, notes that the bond market did not change all over sudden. The change has been slow and gradual to the point where the financial instruments are becoming ineffective in this era. These debt instruments were some of the traditional monetary policies that were used in ensuring that the economy was stable and that individuals could access whatever they wanted with much ease.
Shervin Pishevar goes on to educate individuals on how bonds are useful instruments in controlling the financial status of the country. The government issues a bond, probably an infrastructure bond, to encourage individuals to give debts to the government. This minimizes the amount of money that citizens in a country have. Lowering the amount of money that citizens have reduces the amount of money in circulation, hence decreasing the demand for goods and services.
However, according to Shervin Pishevar, a severe problem is likely to face the government because most of the debt control mechanisms will not be useful. Banks and individuals with so much money are not attracted to bond investment as they can get higher returns from other investments hence failing to solve the widespread problem.