But should there be any further sharp repricing in financial markets, we will need to monitor the consequences carefully. Implications for monetary policy So what does this mean for the sustained adjustment in the path of inflation, which is the key condition for bringing net asset purchases to a gradual end?
In the medium term, political stances will need to respond to market pressures, but meantime we are already seeing the enormous political challenges some countries are facing in moving towards sustainable fiscal policies. There is more public concern and engagement on economic and financial problems – take note of the “Occupy” movement.