As for the outlook, during the phase of monetary tightening, the effects on the market brought about by the regulations might be much stronger. Indeed, the regulations are necessary in order to prevent a large-scale financial crisis such as the Lehman shock from happening again.
Partly as a result, growth of economic activity slowed markedly late in the summer and in the fourth quarter, continuing the choppy pattern that prevailed over the past year. According to the advance estimate, real GDP expanded at an annual rate of only ¾ last quarter after surging 4percent in the third quarter.