As a result, nominal wages continue to grow at a rate of about 2–4 percent irrespective of the phase of the economic cycle, and the U.S. economy has a structure that makes it hard to fall into deflation, since excess labor supply is unlikely to be maintained.
These responsibilities, among others, such as those related to monetary policy, are set out in the Reserve Bank of New Zealand Act (1989).1 It is therefore our job at the Reserve Bank to carry out these legislated responsibilities to the best of our abilities each and every day, for the benefit of improving the wellbeing of all New Zealanders.