The impact of this development can be seen in the path of nominal wages.34 Indeed, the growth in nominal wages has also slowed, along with falling inflation.
Since the introduction of the inflation target, average annual growth in nominal wages has been about 4 per cent, down from the approximately 14 per cent average growth recorded in the 1970s and the 8 per cent witnessed in the 1980s.35  28  Crawford and Harrison (1997). 29  Farès and Lemieux (2000). 30  Akerlof, Dickens and Perry (2000).