EFTA Document EFTA01459550

CIO View Special Arruinci,3 EtPte. I ratAgo-y 2016 Tightening of financial conditions As always when there are sharp moves in financial markets, risks of a persistent tightening of financial conditions rise. This means financial markets move so much that the turmoil starts to spill over to the real economy. Among the things we watch are stronger currencies (reducing export competitiveness), wider spreads (increasing borrowing costs) and weaker equities (potentially hurting both investmen