The spread between long-term and short-term interest rates has expended during most of 1996 in the US, Germany, and the UK. Over the last month, this widening has stemmed from higher long rates, reflecting signs of economic strength and perhaps higher expected short rates.
Suggested citation: “International Development,” Federal Reserve Bank of Cleveland, Economic Trends, no. 96-07, pp. 18, 07.01.1996.