Reflecting these developments, there was deterioration in external vulnerability indicators: ratio of short term debt to total debt increased and import cover of reserves fell. Net international investment position (IIP), another indicator of sustainability of external position, deteriorated during post-crisis period (Table 4). Role of monetary policy During the high growth phase of 2003–08, inflation was low and stable.
The market leader begins to reap monopoly profits, which isn't good for consumers and might not be good for long-run innovation and welfare. Must laggard firms always lag? Could they instead catch up to today's superstars? It depends what determines which firms are leaders and which firms lag. Perhaps this dispersion has something to do with the distribution of management ability.