Download or read book Yield Spread as a Leading Indicator of Real Economic Activity written by K. Kanagasabapathy and published by International Monetary Fund. This book was released on 2002-05 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is growing evidence that the yield spread could serve as a leading indicator of real economic activity. This paper is an attempt to test this hypothesis for the Indian economy by relating movements in the yield spread in the government securities market to movements in the index of industrial production. The results show that yield spread could, inter alia, be considered as a leading indicator of industrial activity in India.