The large structural imbalances which characterize the global economy will eventually have to be rectified; a process which could generate further volatility in asset prices, such as the exchange rates of the major international currencies.
4  The Balassa-Samuelson effect refers to inflation effects due to differences in relative productivity growth between tradable and non-tradable sectors. When productivity growth rises in the tradable sector, wages will follow without putting additional pressure on unit labour costs.