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inverted yield curve |
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Davis points out that a number of observers have expressed surprise that an inverted yield curve between long- and short-term interest rates would develop in the capital markets at a time when the economy did not appear to be in any immediate danger of tanking. Those views are based on long-term rates remaining relatively low while short-term rates rise and comments by Bernanke which indicate no concern an inverted yield curve would signal economic slowdown. An inverted yield curve would show a violation of the condition |
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