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Inflation Uncertainty |
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Inflation uncertainty The fact that future inflation rates are not known. It is a possible contributing factor to the makeup of the term structure of interest rates. Inflation Uncertainty The concept that the future inflation rate is unknowable. Inflation uncertainty is the reason that the yield curve on a bond (usually) trends upward. That is, investors expect extra compensation for accepting the possibility that inflation may outpace the yield on the bond. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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