The Anticipatory Quality of the Yields Spread for Economy and Stock Market: An Analysis on the Case of U.S.

Abstract

The present paper uses the correlation coefficients statistics in order to determine the anticipatory quality of the yields spread for economy and stock market, the analysis being made on the case of United States of America. We determined the periods of time after that the yields spread has the maximum impact on economic growth and stock market development. In addition, we mentioned some utilities of knowing these issues on the anticipatory quality of the yields spread for the central bank, households, companies, credit institutions and equity investors.

Keywords: Yields spread, Economic growth, Stock market, Anticipation, Correlation coefficient.