As I have indicated in the beginning issues of financial stability have raised to the top of the agenda of economic policy discussions because the world and the financial environment have substantially changed since the mid seventies.
At the same time, on the wage front, the continued rigidity in wage demands and settlements, at a time when labour conflicts have risen and productivity has slowed, raises doubts as to the extent that a temporary, oil-driven drop in inflation can feed into a more benign wage-price spiral.