For evidence that the recent slowdown cannot be fully explained by measurement difficulties, see Byrne, Fernald, and Reinsdorf (2016). Return to text  10  11  See Reifschneider, Wascher, and Wilcox (2015). Return to text  12  For a more detailed discussion, see Yellen (2015a).
For large investors, the impact of their actions on market prices is no longer negligible and they potentially incur large transaction costs due to “market impact”, such that fluctuations in market liquidity – the ease with which a security can be transformed into cash – become a first-order concern.