While it is difficult to know with precision how much slack still remains, I am seeing more evidence that labor markets are tightening, and wages are accelerating, although at a measured pace. The 12-month change in the employment cost index (ECI) for private industry workers in the first quarter was 2.8 percent, up from 2.3 percent in the year-earlier period.
Similarly, host countries do not generally owe any formal duties to home countries or their supervisory authorities. The home and host countries can have very different views on the choice of techniques for responding to bank distress.