Restructuring in large parts of the economy began in the first half of this decade. Prior to the crisis, some positive results were already visible in terms of productivity and competitive strength on foreign markets, but these difficult times jeopardize the process. According to our survey, about half of the 65,000 industrial and service firms with 20 or more employees are engaged in restructuring.
Conclusion In the months ahead, the Federal Reserve will continue to monitor developments in the financial markets and act as needed to support the effective functioning of these markets and to foster sustainable economic growth and price stability. In addition, we will be reviewing the events of the past several months to understand the likely causes and effects.