Parallel Shift
As a result, the budget line would have a rightward parallel shift from L 1 M 1 to a new position like L 2 M 2. Conversely, if the money income of the consumer decreases, prices remaining constant, the budget line would have a parallel shift to the left. This rightward or leftward parallel shift of the budget line is known as “shift” of the.
- Parallel Shift is a 2D Platformer Runner game where you take control of King and Tess, two scientists stuck in a dimensional loop. Switch between dimensions, close the matching breaches and rewind time to escape the unknown.
- Parallel Shift Rates across the maturity spectrum change by a constant amount and the slope of the yield curve remains consistent.
Yield Curve Shift
(redirected from Parallel shift)Parallel shift in the yield curve
A shift in economic conditions in which the change in the interest rate on all maturities is the same number of basis points. In other words, if the three month T-bill increases 100 basis points (one %), then the 6-month, 1-year, 5-year, 10-year, 20-year, and 30-year rates all increase by 100 basis points as well. Related: Non-parallel shift in the yield curve.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Parallel Shift in the Yield Curve
A change in the yield curve for bonds with different maturities in which the changes in yields occur evenly. For example, given a yield curve for bonds with one-year, five-year, and 10-year maturities, a parallel shift in the yield curve occurs when the yields for all three bonds increase 10 basis points each. See also: Nonparallel Shift in the Yield Curve.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
Want to thank TFD for its existence? Tell a friend about us, add a link to this page, or visit the webmaster's page for free fun content.
Link to this page: