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Chart of the Week: Yield Curve (10 Year/Fed Funds) vs. Unemployment Less Inflation

Posted By Barry Ritholtz On April 25, 2005 @ 11:00 am In Economy,Markets | Comments Disabled

Fascinating study via Spencer England’s Equity Review: The
Yield Curve tends to flip negative whenever Inflation exceeds
Unemployment.
>

Yield Curve (10 Year/Fed Funds) vs. Unemployment Less Inflation
click for larger chart

Yield_curve_vs_unemployment_minus_inflat [1]

Source: Spencer
England’s Equity Review

The bold red line represents the Yield Curve, while the
thinner line is the remainder of Unemployment once Inflation is subtracted.

>

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Quote of the Day: 

"On the plains of hesitation bleach the bones of countless millions who, on the dawn of victory, stopped to rest and resting died."   
-Omar Khayyam, Mathematician & Philosopher [8]


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2005/04/chart-of-the-week-yield-curve-10-yearfed-funds-vs-unemployment-less-inflation/

URLs in this post:

[1] Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/yield_curve_vs_unemployment_minus_inflat.jpg

[2] Looking for trouble: http://economist.com/printedition/displayStory.cfm?Story_ID=3893763

[3] Junk By Any Other Name: http://www.forbes.com/investmentnewsletters/2005/04/22/cz_rl_0422soapbox_inl.html

[4] Venezuela flexes oil muscle: http://www.csmonitor.com/2005/0420/dailyUpdate.html

[5] Blogs Will Change Your Business: http://www.businessweek.com/magazine/content/05_18/b3931001_mz001.htm

[6] Retreat of Antarctic ice gathers pace: http://news.ft.com/cms/s/692e2334-b28d-11d9-bcc6-00000e2511c8.html

[7] Deconstructing stupidity: http://news.ft.com/cms/s/39b697dc-b25e-11d9-bcc6-00000e2511c8.html

[8] -Omar Khayyam, Mathematician & Philosopher: http://www.amazon.com/exec/obidos/ASIN/1565896750/thebigpictu09-20

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