A second possible explanation of the evident decline in the term premium is linked to the increased intervention in currency markets by a number of governments, particularly in Asia.
Transformations have included property rights granted to farmers, the opening of many economic sectors to foreign direct investment (FDI), the ability to run a private business, the privatization of some state-owned enterprises, the liberalization of goods prices, and the reduction of barriers to international trade. Tremendous output expansion has gone hand in hand with urbanization, as well as augmented employment and investment.