Does anyone have a good way of remembering the shape of yield curves during fiscal/monetary tightening/loosening?

Or what is the intuition here?

thanks!

Does anyone have a good way of remembering the shape of yield curves during fiscal/monetary tightening/loosening?

Or what is the intuition here?

thanks!

Yups in case of opposite sitations remeber that moentary is more powerful

So when monetary loose and fiscal tight - Then slope is slighly upward …

Let me know in case i am wrong

Upward sloping but not steep…

• Upward-sloping yield curve: Expected economic growth

• Downward-sloping yield curve: Economic downturn expected

**Fiscal Policy**

**Monetary Policy**

**Yield Curve Shape**

Expansive

Expansive

Sharply upward

Tight

Tight

Downward sloping; recession is expected

Tight

Expansive

Upward sloping, but not as steep (monetary trumps)

Expansive

Tight

Flat (monetary trumps)

Monetary (loosening) policy can manipulate interest rate to nagative. Tightening fiscal policy do not have that much power. Monetary control short-term rate. => Yield curve moderately steep

i think i got this. There is a good matrix on page 66 of vol.3. I can memorise that.