Sample Essay On Yield Curves

In this paper, we display the central bank yield curves as of current date 20XX for the ten chosen countries. We will discuss the economic situation in the U.S., China, Japan, U.K. and Germany in 2006-2016.
Economic growth in the US has been observed for approximately 80 consecutive months, and this is one of the longest periods of uninterrupted economic recovery after the recession. The US economy has been able to avoid new waves of recession, despite external threats, including the debt crisis in Europe and the weakening of economic growth in China, as well as internal problems, including high unemployment and the suspension of the government work. According to the Goldman Sachs forecast, the US economic recovery will continue. The probability of continued growth of US GDP in 10 years after the recession in the 2008-2009 is estimated at 60%.
Over the past few years, China's economy reached its peak in the growth of GDP in 2010, after which we observed its rapid decline. The second world economy is slowing down and in 2011 the economy has grown at a rate of 9.2%, in 2012 - 7.8%, in 2013 - 7.7% and in 2014 - up to 7.4% . Moreover, the currency exchange rate has also fallen, because now the dollar is worth approximately 6.60 yuan. Chinese industry is also experiencing deterioration. Manufacturing output fell for the year by 2 percent. It should be noted that one of the reasons for slowing the economic growth is the change in the economic model. Previously, it focused its attention on the early industrial production. However, in recent years, China's government is betting on the development of services and domestic consumption.
The Japanese economy is now in a kind of impasse. It has a large margin of safety and a high level of development. However, GDP growth is practically absent. The share of the Japanese economy shrinking in the world. The products are experiencing increasing competition from Europe, the US and especially China. Goods are expensive because of the high salaries of employees. Since 2011, the imports exceed exports. This means that Japanese products’ supply is less than demand. In 2015, the imbalance slowly began to improve. But in early 2016 the situation deteriorated again.
In recent years, a significant progress of the British economy along with a flexible state regulation has led to the overall stabilization of the national macroeconomic indicators, relatively low levels of inflation and unemployment.
Internal stability is achieved because of the correct economic policy. It has helped the UK economy to cope with most of the negative phenomena that appeared as a result of the latest global recession. The volume of the country's GDP exceeded the pre-crisis level only in the third quarter of 2013, whereas in the US has reached it in 2011. However, at the end of 2014 the per capita distribution of GDP is still below pre-crisis levels. Only a service industry could exceed pre-crisis levels. In mid-2015 the GDP per capita is still below the peak recorded in the 1st quarter of 2008.
According to the National Statistical Bureau of Germany, the GDP has grown by 1.6% in 2004. GDP growth in Germany was about to 0.9% in 2005 and 2.5% in 2006 . In constant prices (base 2005) GDP grew in 2013 by 0.4% compared to 2012. Germany's economy is on the rise: 2013 has been a very encouraging year. Production in the real sector is growing, says the influx of industrial and construction orders, the Ifo business climate index rises. In the fourth quarter of 2013 gross domestic product increased slightly (+ 0.4%) compared to the third quarter (+ 0.3% for the second quarter). Foreign trade made in the fourth quarter of 2013 a significant contribution to economic recovery. Despite the crisis in the European economy and China's problems, the German economy showed record growth in 2015.