Also see Diamond and Rajan (2009); Cagliarini, Kent, and Stevens (2010); and White (2009). 3  Discussions of the implications for the zero bound on nominal interest rates for monetary policy can be found in Amano and Shukayev (2010) and Lavoie and Murchison (2007–2008).
[4]  This measure of the real exchange rate gives a sense of international competitiveness from the perspective of labour costs, and so is most useful when comparing the growth of wages across countries.