How they respond to those questions will be important for the global economy. At home, inflation has been too high after a period of very strong demand, but demand is now slowing. At the same time, the Australian economy is experiencing a gain in the terms of trade the like of which we have seldom seen before.
BIS Review 115/1999  2  III. The euro will also act as a catalyst on the banking sector of the new currency area. Increases in capital market activities facilitated by greater market size are likely to foster securitisation and disintermediation. Classical bank lending is likely to suffer from this trend, which has already run its full course in the Anglo-Saxon countries.