If I can also just put this in a little more context—by the end of 2010, the gap on the unemployment rate between the baseline and the optimal control is about 1 percentage point. So if you use a simple rule of thumb from an Okun’s law type ...

Minimizing the unemployment rate and the deviations of inflation from its target.

I have looked at that, and actually, it doesn’t make that much of a difference. Construction goes down in every recession, and so by that measure sectoral reallocation is higher in every recession. I mean, construction is contributing more to sectoral reallocation here than in previous recessions because the ...

Exactly. It is a Lilien type of dispersion index. This isn’t actually how we calculate it, but it is essentially how the industry’s share of employment changes relative to total employment. So it is the growth in that industry’s employment relative to total employment. What we do ...

I’m Stephanie Aaronson.

I will be referring to the exhibits that follow the green nonfinancial cover page. The indicators that we have received since the last FOMC meeting suggest that real activity has been contracting rapidly, and as Dan has described, financial conditions have continued to deteriorate. Starting with the labor market, private ...