Past Recessions and Inverted Yield Curves
While the ins and outs of the market for government debt can be difficult to comprehend to the uninitiated, it plays a huge roll in the American economy. What’s more, the reliability of this particular indicator blows most of the others out of the water in the eyes of most economists.
But, every recession in the past century has seen the yield curve invert prior to the downturn in growth, so this has become one of the more closely-watched signs.