Admittedly, policymakers, once they recognize their mistake, would presumably want the economy to run hotter for a time to restore the previous rate of inflation and would thereby make up for the initial output losses. But coming to the realization that the original assessment was mistaken and that asset prices were in line with fundamentals is likely to take some time.
5 / 12  BIS central bankers' speeches  Duration of investment book and the maturity structure of G-Secs The high interest rate exposure of banks from their G-Sec portfolios is attributable to not only the size of their holdings, but also to the increasing maturity of primary issuance.