Historically, interest rates have been coincident indicators in the economy.

Question

Quizplus · Accepted Answer

Interest rates have long been viewed as a coincident indicator in our economy; that is to say, they are thought to move in concert with industrial production, gross domestic product, and similar measures of general economic health. This is generally true; although in the last five recessions, the change in interest rates has actually lagged behind the decline in industrial production.

Historically, Interest Rates Have Been Coincident Indicators in the Economy