3 See, among others, Schularick and Taylor (2012); López-Salido, Stein, and Zakrajsek (2017); Mian, Sufi, and  Verner (2017); Adrian, Boyarchenko, Giannone (2019); and Kiley (2018). 4 See, for instance, Svensson (2014, 2017). 5 See, for example, Ajello, Laubach, López-Salido, and Nakata (2018); Guorio, Sim, and Kashyap (2018); and  Adrian and Liang (2018).
Given the strength of domestic demand and weak productivity growth, there continue to be upside risks to the Bank's inflation projection. However, other developments since October suggest that the downside risks to the Bank's inflation projection have increased. Difficulties in global financial markets, related to the valuation of structured products and anticipated losses on U.S. subprime mortgages, have worsened since mid-October.