Feldstein: Bond Vigilantes Are Finally Showing Themselves

Feldstein: Bond Vigilantes Are Finally Showing Themselves

Assessment

Interactive Video

Business

University

Hard

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The video discusses the emergence of bond vigilantes and their impact on interest rates, highlighting the unsustainably low long-term rates due to monetary policy. It anticipates a normalization of these rates and examines the Fed's influence on the bond curve. The discussion shifts to the potential market impact of price declines, noting that some investors may not be affected due to their investment strategies.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What role do bond vigilantes play in the context of monetary policy?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

How have long-term interest rates been affected by the actions of the Fed?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the significance of price analysis in relation to yield analysis?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

In what ways might price declines impact American behavior according to the discussion?

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the potential reactions of investors to positive yield despite price declines?

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