12 Box 16.6 discusses a downward-sloping yield curve and the market’s expectations of future short-term rates. In Section 14.6 we saw that the ‘Taylor Rule’ enabled us to calculate the nominal rate of interest that would be required for a given inflation target and output gap. Do you see any possible connection between the Taylor Rule’s prediction and the downwardsloping yield curve? (Remember: the UK inflation target is 2 per cent p.a.)