The specific channels by which financial innovations could have affected competition among currencies are many: •  Electronic trading and payments technologies enabled investors and banks to shift assets quickly away from currencies prone to inflation and related risks.
Outlook for economic activity and prices and the importance of expectations  Let me next explain how the Bank considers economic activity and prices will develop under quantitative and qualitative monetary easing. I will explain in line with the baseline scenario of the “Outlook for Economic Activity and Prices” released by the Bank at end-April. First, the real economy.