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Sunday, December 26, 2010

"The Bond Market Sees an Improving Economy"

Jim Hamilton reviews recent changes in the yield curve and concludes that:

...One goal of the Fed's second round of quantitative easing begun at the start of November was to flatten the yield curve. That obviously didn't happen, and I discussed some of the reasons why a few weeks ago. A second goal was to increase inflationary expectations, which was achieved.

Even so, all we've done is moved back to about where we were a year ago. And a year ago, if you recall, things really weren't that great.

But at least now we're moving in the right direction.

    Posted by on Sunday, December 26, 2010 at 10:40 AM in Economics | Permalink  Comments (5)


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