In this situation, the Federal Reserve and the European Central Bank (ECB) have announced that they will continue with monetary tightening to suppress aggregate demand until it becomes possible to truly envisage the 2 percent inflation rate being achieved.4  3  Since the real wage growth rate is virtually identical to the labor productivity growth rate over the long term, the inflation rate is considered to trend at a level that is equal to the difference between the nominal wage growth rate and the labor productivity growth rate.
2 R Sahay et al (2015), “Financial inclusion: can it meet multiple macroeconomic goals? ", IMF Staff Discussion  Note 15/17, International Monetary Fund, Washington. 3 OECD (2016), “OECD/INFE international survey of adult financial literacy competencies". 4 L Klapper, A Lusardi and P van Oudheusden, “Financial literacy around the world: insights from the Standard  and Poor’s Ratings Services global financial literacy survey".