This behavior, is potentially threatening the sustaining economic recovery. The risks and challenge ahead There are now more signs of global economic recovery and improvement in the prospect of financial market. However it is still too early to conclude, that the recovery path will be smooth and sustainable, since as I previously mention, the lag of policy transmission tend to lengthen and uncertainty remains.
In addition, issues concerning the implication of extraordinary measures, that has been taken by major authorities, such as the widening of fiscal deficit in major countries, and the “exit policy” of quantitative easing taken to fight deflationary pressure in those countries has started to emerge.