The Yield Curve and Our Weakened Economy

6859Mises Daily Monday by Frank Shostak:

It’s difficult to envisage a downward-sloping yield curve in an unhampered market economy since this would imply that investors are assigning a higher risk to short-term maturities than long-term maturities. But in today’s economy, an upward- or a downward-sloping yield curve reflects the Fed’s interest rate policies.

 

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