This dampens inflationary pressures and the policy rate 3 [24]  is then cut temporarily to increase resource utilisation and inflationary pressures. A more expansionary monetary policy makes resource utilisation begin to rise and adapt to the new, higher level at the same time as inflation returns to the target. The policy rate thus returns to its original level. If conditions change in such a way that it affects what we regard as the normal level of resource utilisation, 𝒚𝒚∗ , the policy rate will be temporarily affected during a transition period. I will not discuss the long-term level of resource utilisation per se today, but instead describe some apparent new trends that have taken place on the labour market after the financial crisis. Although these new trends do not give direct measures of resource utilisation or its long-term level, they may still have implications. Some of the new trends, such as the upturn in labour force participation, may mean that the labour supply increases in the long-term, which can increase the production potential in the economy and the long-term level of resource utilisation. While, for instance, a poorer matching efficiency probably means that the long-term level of resource utilisation falls. A constantly changing labour market Changes in the labour market affect all of us.
All of these elements need to be aligned with the desired culture. Through our supervisory process, we have seen that a number of firms have started this process by developing or refining employee surveys and 360 feedback processes to target issues of behavior and  2  BIS central bankers’ speeches  culture. Some firms are incorporating case study discussions into training programs to highlight ethical dilemmas and decision-making. Some are revamping senior level promotion criteria to reinforce what are the desired characteristics and behaviors of leaders. These efforts are at various stages in terms of their depth, breadth and maturity. Supervisors will need to see how these frameworks evolve, and more importantly, see evidence of how these efforts yield results in the form of more open and routine escalation of issues, consistent application of “should we” versus “could we” in business decisions, rigor in identifying and controlling of conduct risk, and how compliance breaches factor into compensation. Measurement and accountability for progress in developing a healthier culture across the industry is paramount to us as supervisors and central bankers. An important measurement of progress is employees’ assessment of their firm’s culture. To this end, we encourage the industry to harness the various individual efforts that have been initiated at a number of firms in order to develop a comprehensive culture survey. This anonymous survey would be fielded across firms each year by an independent third-party and the results shared with supervisors.