The top panel of the exhibit that I have passed around shows crude estimates, put together by the Board's staff, of the risk premium on both equities and corporate bonds going back to 1920. The equity risk premium is constructed by subtracting the real Aaa corporate yield from the ratio of trend earnings to prices as a measure of expected equity returns.
The importance of cooperation and collaboration  The global financial crisis has brought to the fore and encouraged an environment of increased cooperation and coordination among regulatory authorities, with the view of preventing or at least minimising the impact of possible market disruptions arising out of financial crises.