Inflation uncertainty

Definition:

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.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Expected future return

The return that is expected to be earned on an asset in the future. Also called the expected return.

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