In this sense the liquidity premium, like the inflation premium, is another interest rate distorter, and therefore another masker of the truth.

FORBES: What Is the Liquidity Premium? What Does It Mean?

Bonds pay interest based on the expected inflation rate until maturity, plus a fair risk premium over inflation based on the riskiness of the bond.

FORBES: How To Harness The Power Of Passive Investing

Aha, retort the critics, Mr. Ryan would only increase Medicare premium support based on the rate of overall inflation, while health costs are growing far faster.

WSJ: Review & Outlook: Paul Ryan and His Critics