20 In theory, differences between yields on conventional Treasury securities and those on Treasury Inflation-Protected Securities (TIPS) are also informative about inflation expectations in that they measure the compensation received by investors for exposing themselves to future changes in consumer prices.
Transitory changes during an adjustment period may pose however some challenges. 3. Implications for economic activity  Let me now turn to the implications for real economic activity associated with the new regulation. There is a widespread perception that the new measures will act at the macroeconomic level as a significant negative supply shock.