BIS central bankers’ speeches  5  We experienced a phase of high growth and low inflation prior to the crisis. Financing the current account was not an issue for two reasons: first, the CAD was small and second, capital inflows were far in excess of the absorptive capacity of the economy.
Conditions in financial markets As I noted, a sustained recovery in economic activity depends critically on restoring stability to the financial system. Conditions in a number of financial markets have improved in recent weeks, reflecting in part the somewhat more encouraging economic data.