At 1.4%, core inflation in 2023 is predicted to reach levels above its post-2008 financial crisis average of 1.2%, reflecting expectations that slack will gradually be reabsorbed within the projections horizon, thereby putting upward pressure on wage growth.
In the preceding decades our regulatory system had accommodated the growth of capital market alternatives to traditional financing by relaxing many restrictions on the type and geographic scope of bank activities and virtually all restrictions on affiliations between banks and non-bank financial firms.