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Article: Should we worry about the inverted yield curve?(FED @ ISSUE)
- Article from:
- EconSouth
- Article date:
- March 22, 2007
- Author:
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For the better part of the past year, we've been living in an era of the inverted yield curve. This economic state of affairs is fairly uncommon, having occurred only seven times since 1952; the most recent inversion before the current one occurred in 2000, just prior to the last recession. Is this rare phenomenon a cause for concern, a portent of slower growth or even recession?
Articles in the popular media might lead us to believe the answer to this question is a resounding "yes." But a more thorough analysis leads to a different conclusion: There seems to be little reason right now to be overly concerned about what's happening with the yield curve.
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