3 ms·
Why would rates go up in an economy that is getting better? Is it only because the Fed would increase rates in response to the improvement? In a free market, I
by taysic 8y ago
Why would rates go up in an economy that is getting better? Is it only because the Fed would increase rates in response to the improvement? In a free market, I imagine they would go down because people would trust the government's ability to pay back their bills and thus bonds would be more in demand?
- mathattack 8y agoIt’s not credit risk of the govt. It’s the govt raising rates to slow down inflation. (In a downturn, prices go down, so rates can be lowered without an inflation risk)
- deleted 8y ago[deleted]