Mises Wire
Author:
Robert P. Murphy
Online Publish Date:
The “yield curve” refers to a graph showing the relationship between the maturity length of bonds—such as one month, three months, one year, five years, twenty years, etc.—plotted on the x axis, and the yield (or interest rate) plotted on the y axis. In the postwar era, a “normal” yield curve has been upward sloping, meaning that investors