Phillips Curve

Business / Finance / Phillips Curve: A graph that supposedly shows the relationship between inflation and unemployment. It is conjectured that there is a simple trade-off between inflation and unemployment (high inflation and low unemployment, and low inflation and high unemployment). Named after A.W. Phillips. Obviously, the relation between these important macroeconomic variables is more complicated than this simple graph would suggest. For a modern treatment, see work of Robert Lucas.

Riding The Yield Curve

Business / Finance / Riding The Yield Curve: Buying long-term bonds in anticipation of capital gains as yields fall with the declining maturity of the bonds. MORE

Spot Rate Curve

Business / Finance / Spot Rate Curve: The theoretical yield on a zero-coupon Treasury security. MORE

Steepening Of The Yield Curve

Business / Finance / Steepening Of The Yield Curve: 1/16 (0.0625) of one full point in price. Often used in negotiations to compromise an eighth difference, and in options trading. See: Teenyo. MORE

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