But the adjustment could nonetheless be eased if a better foundation for optimism about future income could reasonably be established. Productivity is the key to that. In fact it is the only real basis for it. Of course, finding more productivity is easier said than done.
Some of these questions are not new, though recent events have made them more urgent. Appropriately, some are addressed by the papers prepared for this conference. Pursuing answers to these questions is vital to the work of Federal Reserve and other economic policymakers, and the Fed is likewise engaged in ongoing research to seek answers.