Re:Can We Survive the Next Financial Crisis?
by betterunix2 on Monday September 10, 2018 @10:29PM
(#17956770)
Inflation is typically priced into loans in the form of higher interest rates; this is why bond prices fall (i.e. yields rise) when the inflation rate increases (or more precisely, when people believe inflation will be higher in the future). Also priced in is the uncertainty about future inflation, which is one reason why central banks work to maintain a stable rate of inflation.
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