If households start to expect steady increases in wages, their concern regarding the future will ease and they will become encouraged to spend their income comfortably.
From our point of view in the central bank, it meant that interest rates stayed too low to restrain the very strong growth in borrowing which occurred through that period, which in turn meant that there was insufficient disinflationary pressure on those domestic sectors of the economy which were the source of so much of the inflation in those years.