More specifically, problems related to the sub-prime mortgage market in the US have raised concerns about the probable adverse impacts of developments in the housing market on the rest of the US economy and on the rest of the world.
While current indications are that these concerns may have dissipated somewhat, policymakers need to remain vigilant given the impact of asset price movements on macroeconomic developments. 4. Global financial market developments  Against the background of favourable global economic developments over the past few years, global financial markets have experienced a sustained rally.