*  *  *  I am grateful for helpful comments from Matt Eichner, Mike Gibson, Nellie Liang, Bill Nelson, and Mark Van Der Weide. The thoughts that follow are my own, and are not necessarily shared by other members of the Federal Open Market Committee. Thank you. It’s a pleasure to be here at this workshop.
First, owing to greater certainty about the inflation outlook, there was a decline in the variability of relative wages, and thus a better allocation of labour. Second, we saw longer labour and financial contracts, with lower transaction and bargaining costs for firms and households, and a reduction in time lost to labour disputes.