If so, retirements might contribute less to declining participation in the period ahead than would otherwise be expected based on the aging workforce.11 A second factor bearing on estimates of labor market slack is the elevated number of workers who are employed part time but desire full-time work (those classified as “part time for economic reasons”).
Against a background of increasingly liberal capital mobility and the accompanying growth of capital account transactions, the principal driver of the crises was the unsustainable current account deficits in many of those economies with de facto U.S. dollar-pegged exchange rates. After the crises, the economies have pursued independent monetary policy and have increased the flexibility of their exchange rates, while upholding capital mobility.