Hence, exports and industrial production are likely to turn up gradually. With respect to domestic demand, public investment is projected to follow a declining trend, and private consumption is likely to remain weak for some time since the employment and income situation is unlikely to improve markedly.
4  BIS Review 124/2009  proliferation of macroeconomic models that flesh out the interconnections between risks, liquidity, and capital in the financial system and their implications for the real economy. Research on the credit channel and developments within the financial sector should be paired with work on asset prices and their role in the transmission of economic shocks and monetary policy.