Recent research evidence has emerged that finds yield curves providing useful forecasts of inflation over periods of one year or longer.

Question

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Yield curves have been found to provide useful forecasts of future economic conditions, including inflation, over periods of one year or longer. This is because the shape of the yield curve reflects investors' expectations about future interest rates, which are influenced by their expectations about future inflation and economic growth.

Recent Research Evidence Has Emerged That Finds Yield Curves Providing