How reliably does an inverted yield curve anticipate a recession? How far in advance? Plot from 1970
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How reliably does an inverted yield curve anticipate a recession? How far in advance? Plot from 1970 (as in Figure) the difference between the 10-year Treasury yield (FRED code: GS10) and the three-month Treasury bill rate (FRED code: TB3MS). Discuss the variability of the time between an inversion of the yield curve and the subsequent recession.
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The data plot is below The yield curve inverts when the term spread becomes negative so we examine t...View the full answer
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Related Book For
Money Banking and Financial Markets
ISBN: 978-0078021749
4th edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
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