Estimates of inflation compensation derived from indexed Treasury yields have also been remarkably stable in recent years. Figure 3 also reproduces the estimate of trend inflation produced by the Stock-Watson procedure (the solid line).
The institution, as we were shown today through the displays, not only traded government financial instruments, but also originated other financial instruments such as commercial paper, negotiable promissory notes, corporate medium term notes and bonds. It is pleasing to note the amount of work that the institution performed in the capital market.