Sentences with phrase «inflation risk premium»

But an inflation acceleration could ultimately result in an increasing inflation risk premium.

Therefore, investors act as agents to transmit changing policy expectations and changing inflation risk premiums into the real economy by adjusting their risk exposures across the yield curve.

But an inflation acceleration could finally result in an increasing inflation risk premium.

In addition, they observe that investors may have had a benign outlook for inflation and may not have demanded much, if any, of an inflation risk premium to hold nominal securities.

Excess savings and the external surplus are likely to turn into deficits, ultimately eroding the domestic funding of government debt and driving up sovereign default and inflation risks premiums.

To avoid that, an inflation risk premium is added into interest rates.

The valuation of bonds is a relatively simple process having three components: the real yield, expected inflation and an inflation risk premium.