A high degree of wage flexibility would help to accelerate such welcome adjustment processes. •  However, the persistence of growth and inflation differentials also show that some other sources of diversity are not economically justified. They might be partly attributable to insufficient flexibility; in such economies corrections must be made.
For example, in some economies the combination of weak labour productivity growth and of strong nominal increases of wages and salaries for a sustained period might lead to a progressive deterioration of their competitiveness.