And the ECB has also been a leading central bank in taking action to address dislocations in the longer-term interbank money markets, even though this has proven difficult to realise given that the term premium comes from banks’ own uncertainties about liquidity and counterparty risks.
•  Second, there’s been a decline in the growth of labour supply, some of which reflects a cyclical “discouraged worker” effect, but the ageing of the population is also a significant and enduring influence. •  Third, wages are adjusting to the degree of spare capacity in the labour market.