This signal should not only compress the risk-free curve further, it should also spill-over to inflation expectations, thereby helping to lower the real expected rate of interest.
terms of the simple average for the percentage of correct answers given to six common questions in the OECD survey, which was conducted in 30 countries and economies in 2016. 7 The multiple-choice question asked: "Which of the statements is correct in times of deflation, where prices continue to decline?"