What an inverted yield curve signals — short-term rates exceed long-term, often predicts recession

What the yield curve shows — interest rates across different bond maturities

The yield curve illustrates the relationship between bond yields and their maturities

What the Phillips curve shows — inverse relationship between unemployment and inflation

The Phillips curve illustrates the inverse relationship between unemployment and inflation rates

What the tulip mania of 1637 demonstrated — the first recorded speculative bubble

Tulip mania showed the potential for economic collapse due to irrational speculative bubbles

What raising interest rates does — makes borrowing more expensive, slows spending and inflation

Raising interest rates makes borrowing more expensive, slows spending, and reduces inflation

What quantitative easing does — central bank buys assets to inject money into the economy

Quantitative easing increases money supply and stimulates economic activity

What the Flash Crash of 2010 revealed — algorithmic trading can cause extreme market swings

Algorithmic trading can trigger rapid, severe market fluctuations, as seen in the 2010 Flash Crash