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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.


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Section 4 uses endogenous breakpoint tests to assess the timing and significance of the structural break in the relationship between expected inflation and RPV, where we controlled for possible changes in the effects of unexpected inflation and inflation uncertainty on RPV.
Petrol, food price increases and the volatile exchange rate are some of the factors contributing to the inflation uncertainty.
23) investigated the relationship between the inflation uncertainty and the rates of interests in England.
 
 
 
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