In both the US and European cases, the process of allowing things to go right to the brink of a very disruptive event before an agreement is reached on the way forward has been a source of great uncertainty and anxiety around the world.
Three of the most important emanate from the external environment, and include the risks of stronger U.S. private demand, a failure to contain the crisis in Europe, and weaker growth in China and other emerging-market economies. •  The most important domestic source of risk to the Canadian economy remains the possibility of a disorderly unwinding of household sector imbalances.