As the inflation risk premium becomes relatively less important as a determinant of financial prices, other factors such as credit risk can take on a larger role in the price formation mechanism. Ultimately, this results in a more efficient allocation of financial resources.
Domestic demand is weighed down by the weak trend in households’ disposable income, the slow recovery in employment, and the uncertainty about the economy’s prospects. The leading forecasters have reduced their expectations for growth next year; according to the International Monetary Fund, it will barely be positive.