Transcripts of the monetary policymaking body of the Federal Reserve from 2002–2008.

Well, I think the stress during those periods means that there is more risk that a small shock could actually build into something bigger because people are all in balance sheet reduction mode at the same time. That is why you care about those periods. You already know that they are likely to be more stressful, but the fact that they are more stressful means that a shock of a given magnitude could have more-damaging consequences. So you are really trying to lean against that.

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