Should this shift in expectations occur, the  4  Joshua Gallin (2004), "The Long-Run Relationship Between House Price and Rents," Finance and Economics Discussion Series 2004-50 (Washington: Board of Governors of the Federal Reserve System, September). 5  Jonathan McCarthy and Richard Peach (2004), "Are Home Prices the Next ‘Bubble’?" Federal Reserve Bank of New York, Economic Policy Review, vol. 10 (December), pp.
We need a better understanding of the causes of this divergence, and, if it persists, a clearer sense of which measure of resource utilization best foreshadows the emergence of price pressures. A second, and related, issue is whether the nature of “capacity” has changed.