Forward interest rates have become popular indicators of inflation expectations. The usefulness of this indicator … depends on the relative volatility and the correlation of inflation expectations and expected real interest rates. This paper … expected real interest rate add to the inflation expectations is balanced by a tendency for expected real interest rates and …

ongoing, inflation uncertainty seems to play a large role. Finally, while modern finance theory prices bonds and other assets … using time-varying risk premia. Although the quest for the fundamental macroeconomic explanations of these risk premia is …

assess and price the risk of default. In order to analyse default risk in the macroeconomy, a simple general equilibrium … model with banks and financial intermediation is constructed in which default-risk can be priced. It is shown how the credit … spread can be attributed largely to the risk of default and how excess loan creation may emerge due different attitudes to …

Motivated by policy statements of central bankers, we propose to regard the central banker as a risk manager who aims … at containing inflation and the deviation of output from potential within pre-specified bounds. We develop formal tools … of risk management that may be used to quantify the risks of failing to attain that objective. Risk measures inherently …

situation poses to price stability. We propose to regard the central banker as a risk manager who aims to contain inflation … within pre-specified bounds. We develop formal tools of risk management that may be used to quantify and forecast the risks … of failing to attain that objective. We illustrate the use of these risk measures in practice. First, we show how to …

ECB/Eurosystem as a quasi-fiscal actor, we propose that all its credit risk-related losses be jointly and severally …

that specifies a fixed repayment. However, the future income that will repay this debt is uncertain, so risk can be … environment with other frictions that have been used to justify a policy of strict inflation targeting. …