Exercise 7 - Mishkin

Exercise 7 - Mishkin - 2 Estrella and Mishkin state that...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON 423, Fall 2011: Exercise 7 Discussion Questions on “Yield Curve as a Predictor of U.S. recessions”. 1. How, according to Estrella and Mishkin, does the slope of the Treasury Yield curve predict future economic activity? i. What is the likely effect of low short term interest rates on future economic activity? ii. What does the slope imply about expected future inflation and what is the relationship between inflation and economic activity?
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 2. Estrella and Mishkin state that their study differs from earlier studies in two aspects. What are the two aspects? 3. How, according to Estrella and Mishkin, do the four variables considered in their study perform in forecasting recessions? 4. What are the two reasons given by Estrella and Mishkin to explain why the Yield curve might have provided a weaker signal of the 1990-91 recession?...
View Full Document

This note was uploaded on 02/13/2012 for the course ECON 423 taught by Professor Vd during the Spring '08 term at UNC.

Ask a homework question - tutors are online