And if one doesn't assume the scaling is linear, then one has the order - of - magnitude harder problem of deriving the long -
term shape of the curve from only a decade or two of data.
Not exact matches
Others have noted that if the Fed continues raising short -
term rates while long -
term rates remain stalled, it could turn the
shape of the bond yield
curve upside down, a typical signal
of recession.
Voters are distributed in
terms of their preferences across a bell -
shaped normal
curve which means that there are many votes to be won in the centre.
This is a
term that is important for a range
of exercises, and involves keeping the natural»S -
shaped»
curve in your spine.
Included in the PowerPoint: a) Scarcity, Choice and Opportunity Cost - The Fundamental Economic Problem - The Meaning
of Scarcity and the inevitability
of choices at all levels (individual, firms, govt)- The basic questions
of what will be produced ow and for whom - The Meaning
of the
term «Ceteris Paribus» - The Margin and Decision Making at the Margin - Sort run, long run, very long run b) Positive and Normative Statements - the distinction between fact and value judgements c) Factors
of Production - the rewards to the factors
of production: land, labour, capital and enterprise - Specialization and division
of labour d) Resource Allocation in Different Economic Systems and Issues
of Transition - decision making in market, planned and mixed economies - the role
of the factor enterprise in a modern economy e) Production Possibility
Curves -
shape and shifts
of the
curve - constant and increasing opportunity costs f) Money - functions and characteristics in a modern economy - barter, cash and bank deposits, cheques, near money, liquidity g) Classification
of Goods and Services - free goods, private goods (economic goods) and public goods - merit goods and demerit goods as the outcome
of imperfect information by consumers PowerPoint Also Includes: - Key
Terms for each Chapter - Activities - Multiple Choice and Essay questions from past exam papers.
Included in the PowerPoint: Macroeconomic Objectives (AS Level) a) Aggregate Demand (AD) and Aggregate Supply (AS) analysis - the
shape and determinants
of AD and AS
curves; AD = C+I+G + (X-M)- the distinction between a movement along and a shift in AD and AS - the interaction
of AD and AS and the determination
of the level
of output, prices and employment b) Inflation - the definition
of inflation; degrees
of inflation and the measurement
of inflation; deflation and disinflation - the distinction between money values and real data - the cause
of inflation (cost - push and demand - pull inflation)- the consequences
of inflation c) Balance
of payments - the components
of the balance
of payments accounts (using the IMF / OECD definition): current account; capital and financial account; balancing item - meaning
of balance
of payments equilibrium and disequilibrium - causes
of balance
of payments disequilibrium in each component
of the accounts - consequences
of balance
of payments disequilibrium on domestic and external economy d) Exchange rates - definitions and measurement
of exchange rates - nominal, real, trade - weighted exchange rates - the determination
of exchange rates - floating, fixed, managed float - the factors underlying changes in exchange rates - the effects
of changing exchange rates on the domestic and external economy using AD, Marshall - Lerner and J
curve analysis - depreciation / appreciation - devaluation / revaluation e) The
Terms of Trade - the measurement of the terms of trade - causes of the changes in the terms of trade - the impact of changes in the terms of trade f) Principles of Absolute and comparative advantage - the distinction between absolute and comparative advantage - free trade area, customs union, monetary union, full economic union - trade creation and trade diversion - the benefits of free trade, including the trading possibility curve g) Protectionism - the meaning of protectionism in the context of international trade - different methods of protection and their impact, for example, tariffs, import duties and quotas, export subsidies, embargoes, voluntary export restraints (VERs) and excessive administrative burdens («red tape»)- the arguments in favor of protectionism This PowerPoint is best used when using worksheets and activities to help reinforce the ideas talked a
Terms of Trade - the measurement
of the
terms of trade - causes of the changes in the terms of trade - the impact of changes in the terms of trade f) Principles of Absolute and comparative advantage - the distinction between absolute and comparative advantage - free trade area, customs union, monetary union, full economic union - trade creation and trade diversion - the benefits of free trade, including the trading possibility curve g) Protectionism - the meaning of protectionism in the context of international trade - different methods of protection and their impact, for example, tariffs, import duties and quotas, export subsidies, embargoes, voluntary export restraints (VERs) and excessive administrative burdens («red tape»)- the arguments in favor of protectionism This PowerPoint is best used when using worksheets and activities to help reinforce the ideas talked a
terms of trade - causes
of the changes in the
terms of trade - the impact of changes in the terms of trade f) Principles of Absolute and comparative advantage - the distinction between absolute and comparative advantage - free trade area, customs union, monetary union, full economic union - trade creation and trade diversion - the benefits of free trade, including the trading possibility curve g) Protectionism - the meaning of protectionism in the context of international trade - different methods of protection and their impact, for example, tariffs, import duties and quotas, export subsidies, embargoes, voluntary export restraints (VERs) and excessive administrative burdens («red tape»)- the arguments in favor of protectionism This PowerPoint is best used when using worksheets and activities to help reinforce the ideas talked a
terms of trade - the impact
of changes in the
terms of trade f) Principles of Absolute and comparative advantage - the distinction between absolute and comparative advantage - free trade area, customs union, monetary union, full economic union - trade creation and trade diversion - the benefits of free trade, including the trading possibility curve g) Protectionism - the meaning of protectionism in the context of international trade - different methods of protection and their impact, for example, tariffs, import duties and quotas, export subsidies, embargoes, voluntary export restraints (VERs) and excessive administrative burdens («red tape»)- the arguments in favor of protectionism This PowerPoint is best used when using worksheets and activities to help reinforce the ideas talked a
terms of trade f) Principles
of Absolute and comparative advantage - the distinction between absolute and comparative advantage - free trade area, customs union, monetary union, full economic union - trade creation and trade diversion - the benefits
of free trade, including the trading possibility
curve g) Protectionism - the meaning
of protectionism in the context
of international trade - different methods
of protection and their impact, for example, tariffs, import duties and quotas, export subsidies, embargoes, voluntary export restraints (VERs) and excessive administrative burdens («red tape»)- the arguments in favor
of protectionism This PowerPoint is best used when using worksheets and activities to help reinforce the ideas talked about.
In
terms of the device's overall dimensions and
shape and feel in the hand, it's actually closer to the
Curve 8900 than it is to the 9630.
So it's REQUIRED that we talk about top - performers, even though this misleads people who want to think in
terms of bell -
shaped curves.
But rather than go back to the same well one more time with a QE3, the Fed decided in September 2011 to implement Operation Twist, which is an effort to change the
shape of the Treasury yield
curve by purchasing longer
term debt and selling short
term paper.
Our research shows that it is not a single risk - free rate that drives asset pricing, but rather the entire
term structure
of interest rates (also referred to as the
shape of the yield
curve; we use these
terms interchangeably).
Large depository institutions suchs as Bank
of America, JP Morgan Chase and Citibank may benefit from rising rates when the
shape of the Yield
Curve becomes steep, i.e. when the difference between short
term interest rates and long
term interest rates is large.
The «usual
shape»
of the yield
curve is positive; that is, with short
term rates lower than long
term.
In a balanced economic environment, longer -
term investments demand a higher rate
of return than shorter -
term investments, thus the upward sloping
shape of the yield
curve.
The
shape of the yield
curve can further illustrate the liquidity premium demanded from investors for longer -
term investments.
The yield
curve describes the
shapes of the
term structures
of interest rates and their respective times to maturity in years.
Of course you won't hear this from anyone at the Fed, but the shape of these curves is a very big part of the reason why short - term interest rates were cut last week and why they are likely to be cut again many times over the next year or s
Of course you won't hear this from anyone at the Fed, but the
shape of these curves is a very big part of the reason why short - term interest rates were cut last week and why they are likely to be cut again many times over the next year or s
of these
curves is a very big part
of the reason why short - term interest rates were cut last week and why they are likely to be cut again many times over the next year or s
of the reason why short -
term interest rates were cut last week and why they are likely to be cut again many times over the next year or so.
Backwardation is a
term to describe the
term structure
shape of the forward
curve.
However, for recent years within the 10 - year span, the diverge quite substantially in absolute
terms (although the
shape of the «
curves» look quite similar).
Summarizing, it still seems prudent to limit maturities to about 15 years, since absolute yields are still below levels that would make longer -
term TIPS a compelling buy regardless
of the
shape of the yield
curve.
According to PIMCO, the
term new normal creates an environment where the consensus expectations has shifted from traditional bell -
shaped curves to a much flatter distribution
of outcomes with fatter tails.
In general, the baseline is irrelevant to the long -
term trends in the temperatures since it just moves the zero line up and down, without changing the
shape of the
curve.
Current CO2 mitigation activities will have virtually no impact on the
shape of the long
term CO2 growth
curve yet the cost to implement them often can take away the funding needed to build and maintain critical infrastructure.
However, since we are interested in studying the very long -
term effects
of increasing CO2 up to a factor
of 10 or more, the
shape of the
curves shown in Fig. 1, which indicates a leveling off
of the temperature increase, is the major point
of emphasis, rather than the absolute value
of temperature change for a doubling
of CO2 in the atmosphere.
The long -
term rate
of economic growth follows an inverted V -
shaped curve relative to the growth rate
of the environmental tax, and it is maximized by the least aggressive tax policy
of those that asymptotically eliminate the use
of polluting inputs.
A closer look at the long -
term record also shows these short
term «blips» where SH increases with surface temperature, as can be seen from the
shapes of the two
curves, even though the long -
term trend clearly shows a decreasing SH while temperature increases.
The «usual
shape»
of the yield
curve is positive; that is, with short
term rates lower than long
term.