And within a short period of time, output and employment also began to recover. Through most of the 1980s, inflation hovered in a range of 3 to 5%. While the decade as a whole was viewed by many as a time of prosperity and growing optimism, much of this apparent affluence was based on speculative activities focused particularly on the real estate sector.
See J.C. Trichet (2005), “Monetary Policy and ‘Credible alertness’,” speech delivered at the Panel discussion “Monetary Policy Strategies: A Central Bank Panel” at the Symposium sponsored by the Federal Reserve Bank of Kansas City, Jackson Hole, Wyoming, 27 August. 8  BIS Review 97/2007  of recent weeks have led to an increase in uncertainty.