However, it is clear that there is now a greater awareness of risk – an awareness that was slow in developing, despite numerous warnings of the possibility of a sudden repricing of risk in credit markets. And this repricing is being hampered by a lack of liquidity in markets for some structured products because of the complexity and opacity of these new products.
This would support both a higher level and stronger growth rate of labour productivity in the services sector, promote a more dynamic economy and create more jobs. Moreover, a higher level of competition in the services market should have a dampening impact on prices and would contribute to the reduction of price stickiness in some areas of the services sector.