Bond risk premiums -- certainty found and lost again
This is a second post from a set of comments I gave at the NBER Asset Pricing conference in early November at Stanford. Conference agenda here. My full slides here. First post here, on new-Keynesian modelsI commented on "Downward Nominal Rigidities and Bond Premia" by François Gourio and Phuong Ngo. The paper was about bond premiums. Commenting made me realize that I thought I understood the issue, and now I realize I don't at all. Understanding term premiums still seems a fruitful area of resea...
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