Our ability to pay interest on excess reserves is an essential tool that we can use to avoid
future inflation problems.4
Not exact matches
The public might rightly wonder whether
inflation targets might shift up again at some
future point as other
problems arose.
The build - up of foreign currency reserves during the first part of the cycle is therefore not a sign of strength; it is a sign of a
future «price
inflation»
problem and a warning that the superficial economic strength is a smokescreen hiding widespread malinvestment.
Though the
problem with getting
inflation protection with crude oil
futures is that market participants need to pay storage costs, reflected through the roll yield when there is excess inventory.