If global markets are unsettled, they have good reason to be so
Every year the Federal Reserve Bank of Kansas City hosts a symposium in the Grand Teton resort of Jackson Hole. Some years, guests have little to do but chew the fat and listen to distinguished speakers explain points of economic importance. Sometimes, though, the conclave in Wyoming takes place with a crisis looming. One such year was 2008. This year is shaping up to be another.
Global financial markets certainly fear the worst. Share prices slumped last week amid fears that the first recession since the big crash of 2008-09 is just around the corner. The trigger was developments in the bond markets, which is where investors trade the debt that governments issue to cover their spending.
Germany has already suffered one quarter of falling growth and could easily be heading for a second
What is the yield curve?
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