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Pastimes : Ask Mohan about the Market

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To: Cynic 2005 who wrote (8845)11/21/1997 12:37:00 PM
From: Bearded One  Read Replies (1) of 18056
 
Question about inverted yield curve...

Supposedly an inverted yield curve is a harbinger of recession. But am I right in saying that it, by itself, does not cause the recession? In that case, could foreign selling of US long bonds prevent the curve from inverting when it otherwise would? And what effect would that have on a deflationary environment?


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