In a small country the framework was built on within the existing institutional structures. A close co-operation between the relevant institutions is of key importance and in particular the synergies between the central bank’s maroeconomic expertise, [macroprudential analysis] and supervisor’s regulatory and institution-specific expertise.
That is a long time to be unemployed. You might be starting to lose your skills, you’re adjusting your lifestyle, and you may even be thinking about dropping out of the labour force. That is valuable capacity at risk. It’s not surprising, then, that wage increases remain subdued despite strong productivity growth.