The period between late 2008 and 2010 has often been associated with Australia's response to the Global Financial Crisis (GFC). First, consider the period mid-2006 to mid-2008 which led up to Australia's response. What was the dominant shape of the yield curve over this period? What was happening in the economy at this time to produce this result? Next, consider the period from mid-2008 to end-2009 over which much of Australia's response to the GFC was implemented. 

What was the dominant shape of the yield curve? What was happening in the economy to produce this result?

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The period mid2006 to mid2008 leading up to Australias response to the Global Financial Crisis GFC saw a distinct shape of the yield curve During this ... View the full answer