I think we have maybe two percentage points of an inflation premium built into interest rates that wouldn't necessarily be there if Congress and the executive branch faced these issues together.

Interest rates 7.20 percent Decline reflects growing confidence that growth is slowing, shrinking inflation premium.

One of the approaches of Net Present Value (NPV) analysis is to incorporate an inflation premium and a project risk premium into the discount rate (i).

The DoT points the analyst must be careful not to double count (for instance enter the inflation premium in both the discount rate and the cash flows.

He began buying them in January, when the inflation premium built into the bonds averaged 1.1 or 1.2 percent.

What he means, I think, is that the inflation premium built into the price of long-term bonds used to be 1 or 2 percent, and is now 4 percent.

"The bias in the second quarter will be constructive, because the risk premium in the bond market is just too large, and the inflation premium is too high."

One of the changes that could come with this new view is the shrinking of the so-called inflation premium or hedge that is incorporated into long-term interest rates.

Rubin and most other economists (including Alan Greenspan) attributed this high yield curve to an "inflation premium" that bond-traders were demanding.

Thus, the report said, "the inflation premium of doing business in the city," which has discouraged business expansion for decades, has been eliminated.