6 The deterioration of financial conditions in Europe of late, coupled with notable declines in global equity markets, also serve as a reminder that highly destabilizing outcomes cannot be ruled out.
Finally, besides these clearly identifiable sources of risk, there remains the broader issue that  4  The simplest accelerationist version of the Phillips curve relates the change in inflation to the level of labor market slack; more-complicated versions also highlight the influence of inflation expectations, changes in marginal production costs, and other factors.