Indeed, in the past, any rise in the level of productivity has eventually been  11  Kroszner (2006a) discusses the need for better data to help identify emerging economic developments more accurately and promptly. 12  This point is explored in Kroszner (2006b). BIS Review 90/2006  5  fully translated into a rise in the level of real compensation per hour.
How quickly the re-equilibration takes place depends in part on the extent of competition in product markets and the nature of the wage-bargaining process. Up until now, the process in our economy has taken at least a few years, but it has always occurred.