Ludwig von Mises Institute
Mises Daily : Mises Institute on Austrian Economics and Libertarianism
Updated: 15 min 50 sec ago
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.