Inflation Derivatives and the Inflation Risk Premium – Part 2

Following the article from last week, we now investigate the Inflation Risk Premium. We start by introducing the role inflation plays in monetary policy decisions and what are the mechanics of the Inflation Risk Premium, which is one of the most important drivers of market-based inflation rate. Then we analyse how the changes in the […]

Inflation Derivatives and the Inflation Risk Premium – Part 1

“Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair” Sam Ewing Inflation is an elusive phenomenon which is sometimes dubbed a “hidden tax”, eroding purchasing power and returns. This article is the first in a series of two. In this first part, […]