Similarly, the major accounting and corporate scandals of 2002 led to a significant widening of risk premiums and much anxiety about the veracity of many corporations' financial statements. But for the most part, the markets again functioned smoothly and risks seemed to be priced normally.
Finally, the more pronounced interest rate volatility during the summer of 2003, which appears to have been  BIS Review 32/2006  3  significantly amplified by mortgage hedging, created some short-lived market difficulties. But again, this volatility seemed unlikely to have significant effects on the real economy.