Corporate profits have been strong, and larger nonfinancial corporations with access to capital markets have been able to refinance existing debt and lock in funding at lower yields. Borrowing conditions for businesses generally have continued to ease, although, as mentioned, the availability of credit appears to remain relatively limited for some small firms. Inflation has picked up so far this year.
Our inability to make a timely policy responds to external developments, such as rising world oil prices and global imbalances, have often caused us to lose momentum, which brings a higher cost consequences to be borne by the economy. •  Second, the collapse of the mutual fund industry after such rapid growth has become a source of financial system instability.