{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

325_Supplement4 - Department of Economics University of...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Intermediate Macroeconomic Analysis Spring 2011 1 Department of Economics University of Maryland Economics 325 Intermediate Macroeconomic Analysis Supplement 4 Professor Sanjay Chugh Spring 2011 The following article, which appeared in the Wall Street Journal on February 7, 2011, discusses the uptick in the past week of nominal interest rates, which comes on the heels of a gradual rise since the Fall of 2010. One of the interpretations offered by the article is that the uptick reflects market participants’ expectations of slightly higher inflation in the future than previous expectations. Fully studying this mechanism requires jointly analyzing bond markets and money markets, which we will do in Chapter 14. The most basic building block towards studying these and (many) other issues in macroeconomics is dynamic analysis; Chapters 3 and 4, the baseline consumption-savings framework builds this foundation.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Intermediate Macroeconomic Analysis Spring 2011 2 ABREAST OF THE MARKET FEBRUARY 7, 2011 Bond Market Flashes Inflation Warning Jump in U.S. Treasury yields signals market fear that Fed is behind the curve on prices By MARK GONGLOFF The U.S. bond market has begun sending a message that inflation risks are rising and the Federal Reserve may be too slow to act, potentially marking a significant turning point in the economic recovery. In the past week, Treasury-bond yields have jumped to their highest levels since last spring. Yields on 10-year Treasurys surpassed 3.5% and 30-year yields broke through 4.7%, which makes some worry could mean rates will march even higher.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern