When I first drafted that talk, I focused on the two sides of the economy's adjustment to a dramatic acceleration of productivity. The first I called the bright side. This side pertained to the period when households and businesses were just waking up to the new, more pleasant range of macroeconomic possibilities.
This phase was dominated by above-trend growth, rising utilization rates, and steady-to-declining inflation. My focus in October was on what I called the transition to the other side. This is the side that arrives when productivity growth stabilizes and the temporary demand and disinflationary effects that flowed from the rising rate of productivity growth begin to dissipate.