The economy’s path of recovery has followed the upper edge of the range we had contemplated. Employment recovered more quickly than expected. And inflation persistently ran much higher than anticipated and is now well above our target. But why? It really comes down to supply and demand.
The principles were first drafted by a joint working group consisting of a number of Basle Committee members and representatives from 15 other countries. Subsequently a very lively exchange of views took place in a meeting in Basle in March of this year in which representatives of approximately 40 countries, including the chairmen of all regional groups, participated.