With inflation expectations well contained, this additional monetary stimulus seemed to offer worthwhile insurance against the threat of persistent economic weakness and unwelcome substantial declines in inflation from already low levels. In the weeks that followed, financial market conditions continued to improve, but only haltingly.
One of them might be that ﬁnancial markets are not expecting climate policy to be as strict as it should be. According to the eﬃcient market hypothesis, prices in ﬁnancial markets should reﬂect all available information. So it could also be the case that investors are lacking important information.