The Turn Down Inwards Long-Term Involvement Rates

Source: Council of Economic Advisers

Long term involvement rates are trending downwardly roughly the world. And it's non only since the slap-up recession as well as fiscal crisis. The same tendency has been going on for decades.

The Council of Economic Advisers only issued Steve Williamson reminds us all that in that place is no "the" involvement rate, as well as that the charge per unit of measurement of provide on working capital alphabetic lineament is both stable as well as much higher than authorities bond yields. There is a run a jeopardy premium, as well as it's big, as well as it varies over time. Practically all macro as well as increase theory forgets this fact. Since I've spent close of my career emphasizing the size as well as volatility of the run a jeopardy premium, I should recall this reminder inward every spider web log post. Thanks for pointing it out Steve!