Although indicative of firms' unwillingness to commit themselves to hiring longer-term regular employees, such developments, in so far as they illustrate the increased flexibility of the labor market, also suggest that firms have become better able to adapt to change. In addition, some firms have started to invest in highly profitable areas.
If people anticipate that the central bank would take the appropriate measures to achieve the target, expectations about the future price level could become very well anchored. In these circumstances, it would take smaller moves in nominal interest rates to bring about the needed change in aggregate demand, and hence the zero bound is less likely to become a problem. Let me explain.