In this video, Ryan O’Connell, CFA, FRM, breaks down how monetary and fiscal policy influence interest rates, inflation, and the yield curve. You’ll learn the key differences between contractionary vs. expansionary policy, how real and nominal rates relate to inflation, and how to interpret yield curve shapes like flat, steep, and inverted. We also explore how the yield curve reflects Federal Reserve and central bank monetary policy changes throughout the business cycle (including during a recession). Perfect for finance students, investors, and anyone looking to understand macroeconomic forces in a clear and actionable way.
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Chapters
0:00 – Contractionary vs. Expansionary Monetary Policy Explained
1:18 – Fiscal Policy: Contractionary vs. Expansionary Approaches
2:02 – Real vs. Nominal Interest Rates & Inflation Rate Explained
3:53 – Yield Curve Shapes: Flat, Steep, and Inverted Explained
6:39 – Yield Curve & Monetary Policy Across the Business Cycle
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
