Interest rates tell you if the curve is steep, that gives you gains from specialization. I dunno why this is complicated, perhaps because the Treasury curve is often not a good proxy for the generalized yield curve. Modeled Behavior brings it up.
When the curve is steep, money is cheap. I think this is true because people are evidently borrowing cheaper in the short terms and making money at the longer terms, isn't that the definition of a steep curve?
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