Third pillar

Unofficial term for the apparent fact that, in addition to money supply (first pillar) and other measures (second pillar), the ECB also focuses on inflation expectations. – Among various approaches to measuring market participants’ expectations about future inflation, the preferred approach today is to look at the difference in yields on forwards (financial futures transactions; financial futures) for a nominal interest rate bond on the one hand and an inflation-indexed bond on the other. – See bond, index-linked, banknote value restriction, break-even inflation rate, monetary stability, index-linked bond, inflation, perceived, thrift rule, two-pillar principle, second-round effects.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/