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mk · 2948 days ago · link · · parent · post: A 3-D View of a Chart That Predicts The Economic Future: The Yield Curve
It is, inherently, a forecast for what the economy holds in the future — how much inflation there will be, for example, and how healthy growth will be over the years ahead — all embodied in the price of money today, tomorrow and many years from now. Yes, when did forecasts become visions? The yield curve is the result of hedging bets on the economy, muddied by overall demand based on alternate options available.The yield curve shows how much it costs the federal government to borrow money for a given amount of time, revealing the relationship between long- and short-term interest rates.