Fiscal and Monetary Policy Trick trick, likely, remember

bchadwick

If they are both tight. It is intuitive to assume an inverted curve. It is also fairly intuitive to see why them both being loose gives right to a steeper non-inverted curve. If they test, they would likely test one being tight and the other being loose. A trick I have been using is that if one is loose and the other tight, remember: FLAT = F ISCAL L OOSE.

Fiscal
Loose
A
T

If Fiscal is Loose it will be a FLat curve. If Fiscal is tight and Monetary is loose then monetary dominates and gives rise to a slightly non-inverted curve. hey...whatever works

skycfa

yeah I also wrote MONETARY DOMINATES in big caps above this note in my book. nice pick up

(this is not sarcastic, im serious lol)



Edited 1 time(s). Last edit at Monday, April 11, 2011 at 10:06PM by SkipE99.

Analti_Calte

Thanks, this will come in handy.

NO EXCUSES