1 The economic outlook Turning first to the economic outlook, let me begin by stating the obvious: After a period in which there seemed to be only two plausible scenarios – very bad and even worse – financial and economic conditions have steadied. A year ago the world financial system was profoundly shaken by the failures of large financial institutions here and abroad.
In this connection, it has already put out 5 consultation documents dealing with issues where there is national discretion. These documents discuss measures which the Bank intends to adopt as well as other matters requiring clarification and supervisory guidance.