BIS Review 1/2005  7  8  BIS Review 1/2005  Restructuring and participation As the number of puzzles concerning the labor market increases, so does the complexity of analysis necessary to relate observed variables to concepts relevant for monetary policy. Thus, it seems worthwhile to ask whether restructuring and the decline in participation might be part of the same phenomenon.
This favourable impact is also expected to continue over the next six months. One should keep in mind, however, that these positive expectations may not immediately translate into higher loan growth. That is a process that takes time to materialise, not only owing to operational considerations but also because the reaction of loan demand to improved supply conditions involves lags.