Attention needs to be paid to the risk that global financial conditions will tighten further, mainly through adjustments in asset prices, fluctuations in foreign exchange markets, changes in financial institutions' lending  8  positions, and capital outflows from emerging economies, leading overseas economies to deviate downward from the baseline scenario. The second point concerns wage increases (Chart 11).
As I began to think about what I might discuss today, I found myself remembering an important talk – the Harold Innis Lecture – that Doug gave at the meetings of the Canadian Economics Association in 1985 in Montréal (Purvis 1985). I was in the audience that day.