Naturally, the accompanying risks are particularly manifest in those countries with a disproportionately large share of foreign currency liabilities, currency mismatches and other vulnerabilities. 4  Uncertainty in the world economy has also been significantly affected by the rising trend in trade protectionism. In addition to adversely affecting resource allocation and economic activity, this may have an impact on confidence.
This diversity is of the order of magnitude of what is observed in the United States. But the persistence of inflation differentials is the main problem to the extent that it reflects structural rigidities or a lack of competition. It has to be corrected at the level of the economies concerned in order not to see their relative competitiveness fall for too long.