While the picture is a mixed one and some markets show signs of froth, indicators of financial stability do not seem to show widespread imbalances.11 For example, EME equity prices, shown in chart 5, plunged during the global financial crisis, rebounded thereafter, but then generally flattened out or even declined.
Implications for the Current Recovery Phase Based on the experience of the past, I would like to explore wage and price developments as well as firms' efforts to raise productivity in the current recovery phase. Let me start with wage developments.