Since the introduction of the inflation target, average annual growth in nominal wages has been about 4 per cent, down from the approximately 14 per cent average growth recorded in the 1970s and the 8 per cent witnessed in the 1980s.35  28  Crawford and Harrison (1997). 29  Farès and Lemieux (2000). 30  Akerlof, Dickens and Perry (2000).
31  O’Reilly (1998). 32  Fortin and Dumont (2001). Their results imply that less than 50 per cent of agents take inflation into account when it is near 3 per cent. 33  See Technical Background Document 1 from the renewal of the inflation-control target (May 2001).