It is likely that this has resulted, at least partly, from the improved anchoring of inflation expectations which may, in turn, have led to a more forward-looking behaviour on the part of those setting prices and wages. Less indexation of wages and prices to current and past inflation would tend to contribute to lower volatility of employment and output in response to macroeconomic shocks.
Importantly, the achievements in the area of monetary stability have not come at the cost of higher unemployment. On the contrary, the unemployment rate has averaged around 8½% over the past six years and has therefore been more than one percentage point lower, on average, than in the 1990s.