Increasing numbers of lenders entered this market, with underwriting standards, industry practices, and risk-based pricing evolving along with the subprime market. The growth of this market is well recognized. Also well recognized are the problems that have arisen with these changes. The Board believes that responsible subprime lending has an important role to play in expanding credit to traditionally underserved borrowers.
* * * The term “secular stagnation” was coined by Alvin Hansen before World War II.1 Among the driving factors of the slowdown he predicted were limited population growth and lack of innovation. A decade or so later, we had the baby boom and one of the strongest economic expansion the world has ever experienced – in French, “Les Trente Glorieuses” started.