In the presence of downward nominal wage rigidities, firms will keep relative wages too high and employment too low. Hence, very low rates of inflation might prevent real wages from adjusting downward in response to declining labor demand in certain industries or regions, thereby leading to increased unemployment and hindering the re-allocation of labor from declining sectors to expanding sectors.
And this  6  BIS central bankers’ speeches  means that our research departments, universities, and think tanks have to develop ideas that they can feed to India’s representatives in international meetings. Conclusion Let me conclude. We are more dependent on the global economy than we think.