Bail-inable securities The higher capital standards in Basel III, combined with a well-designed leverage ratio and appropriate liquidity requirements, will substantially reduce the probability of failure, but since failures will still happen, we must also reduce their impact. Bail-inable securities are part of the solution.
But respondents to the latest Survey of Professional Forecasters indicated that they were more uncertain about the future trajectory of inflation. Altogether, the evidence points toward the inflation risk premium as the likely cause of much of the rise in five-to-ten-year-ahead inflation compensation. Although a distinctly different concept from inflation expectations, policymakers need to be concerned about any widening of inflation uncertainty.