And both unemployment and inflation have come down at the same time. To be sure, with tightening labour markets, there is some risk of an increase in inflation pressures in the United States. Thus, one cannot rule out the possibility that the Fed may have to raise interest rates somewhat further at some point.
But any future increases in interest rates should not have to be large and may be conditioned by the implications of the recent international developments I mentioned earlier. What parallels can we find in all this for Canada? The recent Canadian experience The adjustment in Canada to the forces of technological change and globalization has run behind that in the United States.