BIS Review 73/2004  3  estimates of how strong inflation pressures are likely to be over the next few quarters, financial market participants should be able to forecast future values of the short-term interest rate, allowing them to price bonds and other financial assets more efficiently.
Compared with earlier recessions in the post-war period, those since the early 1990s have tended to involve more financial sector distress. The uncertainty this engenders – or perhaps simply the balance sheet distress – changes the nature of the recovery. In particular, it tends to make the subsequent pick-up in employment quite drawn out.