BIS Review 12/2008  1  For example, in 2004 the mechanism for primary market issuance evolved from an “underwriting” system, which helped minimise placement risk and ensured allocation, to an auction mechanism, which served to increase transparency, stimulate competition and improve the process of price determination.
Second, in addition to the direct adverse price effects, the uncertainty about growth prospects is likely to cause consumers to delay expenditure and businesses to postpone investment.4 See e.g. Bloom, N. (2009), “The impact of uncertainty shocks”, Econometrica, 77(3): 623– 685.