The increase in the risk
premium during the Great Recession reflected the role played by housing and mortgages.
Not exact matches
Additionally, policymakers had previously acknowledged rate cuts» ineffectiveness at pushing down term
premium at the start of
Great Recession, but «tantrum fears» had subsequently fueled «policy cognitive dissonance» to argue otherwise
during policy normalization.
The figure also suggests that, with some modest volatility, the mortgage risk
premium has remained near 1.60 percentage points since the late 1980s, except for a noticeable increase
during the
Great Recession.