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Increased term premia in the US since the onset of anticipated tapering seem to have raised term premia everywhere except Chile.
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An alternative, although not mutually exclusive, explanation can be raised in term of speed-accuracy trade-off.
There were regular events where experts talked about: fund raising, term sheets, constructing a team, product development, establishing biz dev partners, M&A, dealing with the press, etc.
In 1994, Mr Greenspan raised short-term interest rates by 1.5% in a matter of months.
Last week, the central bank raised short-term rates for the third time this year.
The Fed has raised short-term rates six times in the last year to slow the economy.
But the credit market tightening has significantly raised longer-term borrowing costs for consumers and businesses.
The Federal Reserve raised short-term interest rates by 0.25 percentage points on September 20th, bringing the federal funds rate to 3.75%.
See articleIndia's central bank raised short-term interest rates in a bid to ease inflationary pressure.
The one daily market decline came on Tuesday, when Federal Reserve policy makers raised short-term interest rates to 4percentt.
The Fed raised short-term rates an additional quarter-point last week, pushing up the key federal funds rate to 6percentt.
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