The term structure, or the difference between short-term and long-term interest rates, can predict future recessions in different countries. Term spreads can forecast recessions up to 2 years in advance. While German and US term spreads are often significant in predicting recessions in other countries, they provide limited additional information except in Japan and the UK. Leading indicators can also help predict recessions, but mainly in the near future. This shows that term spreads can be useful indicators for monetary policy decisions.