Overheating and Parallel risk: Difference between pages

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imported>Doug Williamson
(Create page. Sources: The free dictionary webpage https://financial-dictionary.thefreedictionary.com/Overheating, The Treasurer April 2018)
 
imported>Doug Williamson
(Create the page. Sources: linked pages and BIS http://www.bis.org/bcbs/publ/d368.pdf)
 
Line 1: Line 1:
''Economics''.
''Interest rate risk.''


Overheating describes the situation in an economy when production cannot keep pace with rising demand, leading to the risks of high inflation and of later recession.
Parallel risk is the risk of adverse effects from parallel changes in interest rates.
 
 
<span style="color:#4B0082">'''''Not overheating yet'''''</span>
 
:"While the building global economic upswing may eventually gain so much momentum that the risk of overheating becomes more pronounced, we are not there yet.
 
:Faster productivity growth helps delay this process."
 
:''The Treasurer magazine, April 2018, p15 - Kallum Pickering, senior UK economist, Berenberg Bank.''


This risk is relatively simpler to analyse, compared with non-parallel risk.




== See also ==
== See also ==
* [[Deflation]]
* [[Back test]]
* [[Demand]]
* [[Interest rate risk]]
* [[Demand-pull inflation]]
* [[IRRBB]]
* [[Financial stability]]
* [[Non-parallel risk]]
* [[Hyperinflation]]
* [[Parallel shock]]
* [[Inflation risk]]
* [[Shock]]
* [[Recession]]
* [[Yield curve risk]]
* [[Reflation]]
* [[Stagflation]]
* [[Supply]]

Revision as of 10:57, 24 August 2016

Interest rate risk.

Parallel risk is the risk of adverse effects from parallel changes in interest rates.

This risk is relatively simpler to analyse, compared with non-parallel risk.


See also

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