Policymakers confront large shocks that are difficult to predict. For example, we saw how financial markets and policy makers did not anticipate the 1997 Asian Financial Crisis, the 2008 Global Financial Crisis, the outcome of the United Kingdom European Union membership referendum, or the recent US Presidential election.
With resistance to adjust pension ages or to extend participation rates among age or gender cohorts with low employment, this all in all may cause an upward pressure on wages, bearing the risk of a wage-price spiral. Informal contacts with NFC point to expectations of wages rising in 2011 in line with inflation.