think it has contributed as those earli new economiecontributed, to an increase in productivity.re was a time when economists thought that when thunemployment rate got below 6% -- or 5 1/2 or 5, something like that -- that we would inevitably have inflation. we found out in e 1990s that with a very productive economy we don't necesrily get inflation when unemployment drops. schoumacher: productivity was a key factor in keeping inflation down. but another factor wasthe globalization of business. the introduction of market forces frr trade, and widespread deregulation meant that international trade and investment played a much larger role in our economy than befo. volcker: japan's been almost flat on its back. europe's bn growgvery slowly until recently, particularly with a hh level of unemployment. so if yolook at the world as a whole while we were expanding, there was very ready availability of goods. when inflation rises in one country those citizens have the option of buying from abroad. there was a lot of emphasis on expenditure restraint. and that was particularly strong duri