ForumIAS LATEST
- SFG FRC 2027 | Program starts from 15th Dec. 2026 | Admissions open for Tranche-1 Entrance Test till 25th Oct. 2026 Click Here to know more →
- Prelims Test Series (PTS) for Prelims 2027 starts 11th Oct. 2026 Click Here to know more →
- [Pre-order] Ethics Redbook 3rd Edition: Delivery starts from 21st October onwards Click Here to Read More →
- 21 Sept. | GS Advance Program (GSAP) for UPSC 2027 Mains starts from 11th Oct. Click Here to Read More →
- Recently,United States and UK yield curves had inverted for the first time since 2007 and 2008 respectively.This has led to the fear of global recession in the coming future.
- The yield curve is a graph showing the relationship between interest rates earned on lending money for different durations.
- A normal yield curve is one in which longer maturity bonds have a higher yield compared to shorter-term bonds due to the risks associated with time.
- However,inverted yield curve is one in which the shorter-term yields are higher than the longer-term yields which can be a sign of an upcoming recession.
- Recession is a slowdown or a massive contraction in economic activities, wherein economic indicators such as GDP, profits, employment tend to fall.
