1 post tagged “jeff naecker”
Professor DeLong encouraged us to add interesting things to the blog, so in that spirit, Econbroswer has posted a follow-up to the post we read last month on possible explanations of the inverted yield curve:
http://www.econbrowser.com/archives/2006/12/the_yield_curve_3.html.
They suggest that large foreign holding of US bonds may be holding down the term premium and therefore making the yield spread negative. This effect, according to a recent econometric study cited on the post, may be causing up to a one percentage point decrease in the 10-year note's nominal yield.
The blog's recent topics also include China and the strength of the dollar, for anyone looking to read more about other topics we've been studying.
-Jeff Naecker
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