Looking forward, the U.S. economy is expected to continue expanding steadily despite the fact that tax cuts have run their course and crude oil prices remain at high levels. The Chinese economy is continuing to show robust growth underpinned by steady demand at home and abroad, and still seems to be overheating.
The decline in inflation rates is due mainly to the fall in commodity prices and the significant slowdown in economic activity largely related to the global effects of the financial turmoil. A cross-check of the outcome of the economic analysis with that of the monetary analysis supports this view.