9 The statistical evidence also suggests that the sustainable rate of unemployment could be higher. As illustrated by the results reported in Reifschneider, Wascher, and Wilcox (2015) and Barnichon and Matthes (2017), standard errors for estimates of the sustainable rate of unemployment are typically at least 1/2 percentage point.
Economic resilience through transitions In my first speech as Governor in 2019 I spoke about ‘economic resilience’ and what I considered some of the major transitions of our time.2 Economic resilience is in essence the ability of an economy to manage change, whether it is to withstand or recover from shocks or the more gradual evolution to a different state.