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

Brian, you reported the decline in measured term premiums, and yet in the panel next to that you noted that measures of volatility don’t seem to have fallen. The term premium is, of course, a combination of volatility in the securities return and covariance with— let’s call it “marginal utility” just for the sake of argument. Do your estimates give you information on whether that correlation with the expected variance of real outcomes has changed?

Keyboard shortcuts

j previous speech k next speech