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Does the level of the yield curve predict inflation?

Authors :
Kaya, Hüseyin
Source :
Applied Economics Letters; May2014, Vol. 21 Issue 7, p477-480, 4p
Publication Year :
2014

Abstract

This article addresses the issue of forecasting inflation using the term structure of interest rates. I use several measures for the level and the slope of the yield curve and investigate their predictive content for inflation. The results show that the forecasting performance of the indicators varies across countries. The findings suggest that the level of the yield curve is a better predictor for inflation than the slope of the yield curve. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
13504851
Volume :
21
Issue :
7
Database :
Complementary Index
Journal :
Applied Economics Letters
Publication Type :
Academic Journal
Accession number :
94068255
Full Text :
https://doi.org/10.1080/13504851.2013.868582