And they can shape institutions in labour markets, education and health systems to change underlying structures and market outcomes.
The recent increases in longer-term interest rates could restrain housing activity as well as other interestsensitive areas of demand, and some further pickup in the dollar could weigh on net exports and business investment. Recent months have seen an increase in the upside risks to domestic demand. Sentiment has increased along with equity prices, which are up around 10 percent since October.