2  For productivity and wage effects from NAFTA, see De Hoyos, R. and L. Iacovone (2013), “Economic Performance under NAFTA: A Firm-Level Analysis of the Trade-Productivity Linkages,” World Development 44; and Caliendo, L. and F. Parro (2012), “Estimates of the Trade and Welfare Effects of NAFTA,” NBER Working Paper 18508. Evidence of the FDI channel of NAFTA is provided by Waldkirch, A.
These are uncomfortably high levels and I have expressed my concern in this regard on various occasions. Excessively high rates of expenditure growth will ultimately impact on domestic inflation, although the timing and extent of these effects are at times uncertain. These developments will remain an important focus of our monetary policy deliberations. My concern, however, extends beyond simple monetary policy considerations.