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You seem to be concerned with the mathematics of the curve. But it's really important to remember that economics (and finance) is not a science like chemistry. Baking soda mixed with vinegar is not always a volcano, no matter how much of each ingredient is mixed. The "yield curve" has virtually nothing to do with the curve. It has nothing to do with ...


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The yield curve is a graph of interest rates across time (2 month, 1 year, 2 year, 5 year, etc.) for similar debt instruments. The most closely watched yield curve is for US Treasury securities. It looks somewhat like the upper 1/2 of a U laid on it's right side. This is called a positive or normal yield curve. A flat yield curve is when there's is ...


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The 2- and 10-year rates are used to indicate an inverted curve. If the 10-year rate is lower than the 2-year rate, then the slope of the curve has to be negative at some point. Since the curve is usually monotonic (doesn't switch between increasing and decreasing) picking values at each end will most likely tell you if the curve in inverted or not. So the ...


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It doesn't help the economy but it does help with calculating your change. If a currency has so many zeroes that the price of basic goods overflows calculators and cash registers it becomes even more difficult to buy and sell things. Knocking a few zeroes off does nothing for inflation, it just simplifies adding and subtracting a little.


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Redenomination under hyperinflation doesn't save the suffering economies. What it does is make it practical to pay for goods with cash, at least for awhile. From Investopedia When hyperinflation is involved, redenomination becomes necessary because it requires too many old notes to facilitate commerce effectively. For example, in Zimbabwe, the small ...


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Partially this depends on how you setup your business and your accounting. You probably run your local business in liretto. How currency fluctuations affect you and who carries the risk/reward when it happens, depends on how you sell your product. There are three major scenarios You sell to an exporter than pays you in liretto There is no difference to your ...


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My expenses wouldn't stay the same either. Maybe the liretto isn't worth as much now, but an hour of work is still an hour of work. If I tried to pay my workers the same nominal amount, even though it's worth half as much now, they would be outraged. They read the news too, after all. Your workers have a contract stating that they will paid X lirettos an ...


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