Commentary.

The author comments on the paper by Ravi Bansal et al explaining asset pricing issues by specifying the inter-temporal structure of risks to put long-run risks into consumption and assets' cash flows and changing preferences to make the representative consumer care more about long-run risks. He thinks a representative agent's consumption Euler equation linking one-period real interest rate to consumption growth rate is the New Keynesian IS curve. He suggests Bansal's approach to macroeconomists.