Specifically, to contemplate the future, I start from the fact that we are in the midst of a balance sheet adjustment process after the financial bubble burst, at a time when the population is ageing. This is not the simple balance sheet adjustment of the past, which took place with a growing young population.
The effect on the yield curve of factors other than expected inflation The yield curve is normally positively sloped; in other words, the longer the duration of the investment, the higher the yields. The positive slope is explained, among others, by the premium on long-term bonds which is required to compensate for the greater risk in keeping paper with longer maturities.