In retrospect, a tighter focus on fundamentals -- that policy was acting in a preemptive fashion to contain inflation, rather than an extrapolation of the sequence of recent policy actions -- would have helped to cap the rise in longer-term yields.
BIS Review 83/1997  -3-  The Benefits of Market Mechanisms While I have been speaking about all manner of misjudgments, I actually do have an economist’s inherent confidence in market mechanisms. Market participants do, on average, get it right and are rewarded accordingly, to the benefit of economic efficiency.