But I want to stress that, for the economy as a whole, the outlook is still favourable for continued expansion in output and employment, and for a further gradual reduction in the margin of unused capacity. Recent developments in international financial markets Next, I would like to say a few words about recent developments in world financial markets.
The key feature of these developments has been the sharp appreciation of the US dollar. Measured against all major currencies, the value of the US dollar has risen by about 4 per cent since late September. Two main factors have combined to push the US dollar up.