15 Observations and anecdotal information following the failure of Lehman Brothers suggest that this behaviour of firms was very important in amplifying price volatility in the autumn of 2008. Analysis of such behaviour strongly suggests the need for a macroprudential approach.
In other words, the economy will not be able to grow as quickly without sparking inflationary pressures. So it will be increasingly important that our economy uses the labour that is available in the most efficient way. What does this mean for policy-makers? To begin with, it means that we must remove any unnecessary barriers either to labour force participation or to labour mobility.