• Many countries including the US have yet to put in place a convincing medium-term fiscal consolidation plan
• Some emerging countries in Asia should allow for further appreciation of their currencies
• There are increasing concerns about the politcal resolve to support fiscal adjustment efforts in Europe’s periphery
• There are increasing market concerns in the US due to continued stalemate over debt ceiling, long-tem fiscal package
• A prolonged period of low interest rates may lead investors to underestimate risks in their search for yield
• It’s fundamental that policymakers increase efforts to tackle longstanding financial challenges