Internal political risks to reducing inflation to its target decreased after the new convocation parliament started to operate and a new government was formed. This makes it possible to intensify negotiations on a new cooperation program with the International Monetary Fund.
So, negative expectations can lead to lack of investment and a rush to quality which in turn harms the real economy and that again feeds back to the markets. It may well be – I think it is likely – that the present skepticism is an overreaction just as the exuberance of the years leading to 2008 was an overreaction.