One of the benefits of this type of forward guidance is that it remains a product of the economic conditions that give rise to it – in other words, it remains Delphic, as it has always been. Should those conditions change, policymakers may reformulate or repeal the guidance altogether.
I'll discuss each of the two components, trend labour input and trend labour productivity, emphasizing longer-term trends and reflecting on how these trends may have been affected by the current recession. Labour input: A drag on potential output growth For the past 30 years, Canada, like some other nations, has been sailing with a favourable wind at its back.