In Minnesota, the unemployment rate fell from 5.2 percent to 3.4 percent over the same period. The stock market soared, and - remarkably enough - core inflation moderated. Much of this performance was fueled by an investment boom that also contributed importantly to rapid growth in labor productivity.
Given the integration of CESEE countries in the world financial markets, credit growth in these countries has acquired an international dimension. There is significant presence of foreign-owned banks and external funding is an important source of bank liquidity.