What is the main criticism for using expansionary fiscal policy? What's the difference between a budget deficit and national debt? What is one example of a government borrowing money? Why do investors LOVE UK government bonds? How do investors know when these bonds are worth it? What is the flaw of the flat yield calculation? How do investors then take into account the flaw of the flat yield? What is the relationship between the price of a government bond, and the yield? Recent article on government bonds (June 2016) Image copyright AFP/Getty Images The return on benchmark UK government bonds has fallen to a record low as investors move in to safer assets on concerns about the global economy.
The yield on the UK's 10-year gilt dropped below 1.25% for the first time.
What is the 'crowding out' effect?