The productive allocation of resources needs clear signals about relative price changes. This is where monetary policy really comes into the picture. Sound monetary policy makes price signals clearer. In an environment of overall price stability, it is much easier to detect changes in relative prices. Bad monetary policy clouds the picture.
One factor is the availability of new technology, especially computers and telecommunications technology. The other factor is the revolution in management attitudes and practices that has occurred since the 1980s. A whole generation of managers has been trained to think continuously about productivity and quality management.