... structure of interest rates, and especially the size and dynamics of risk premiums. Therefore, Rudebusch and Wu (2007) use their macro-financemodel to consider whether the bond market’s assessment of ... solved and responses of the term premium and the other variables of the model to economic shocks can be computed.Figures 5 and 6 show the impulse response functions of the term premium and output ... Structure of Interest Rates, ”Journal of Money, Credit, and Banking, Vol. 38, 119–140.27 Macro-Finance Models of Interest Rates and the Economy Glenn D. Rudebusch∗Federal Reserve Bank of San FranciscoAbstractDuring...