Given the frequency with which policymakers had to make these decisions, some countries lost 2 / 10  BIS central bankers' speeches  both the benefits of exchange-rate stability and their monetary policy independence. The social costs were high.
Many of these forces continue to operate in today’s 6 economy, conceivably with greater force than in the late 1990s. In addition, measured labor productivity has continued to increase rapidly since early 2001--remarkably so, considering that productivity tends to be strongly procyclical--raising the possibility that we have underestimated the degree to which innovation and better use of existing resources have increased potential output.