Cracking the Conundrum
---- Acknowledgments ----
Prepared for the March 2007 meeting of the Brookings Panel on Economic Activity. The paper was written while Wright was on leave at the University of Pennsylvania. It began as two separate discussions of John Cochrane and Monika Piazzesi's "Decomposing the yield curve." We thank them for their insights. We also thank Bill Brainard, Frank Diebold, Don Kim, George Perry, Dick Sylla, and Stan Zin for comments and advice. The views expressed are the sole responsibility of the authors and should not be interpreted as reflecting the views of the Board of Governors of the Federal Reserve System, any other employees of the Federal Reserve System, or the National Bureau of Economic Research.