Euro area productivity growth could slow further in the event of a downturn Euro area productivity growth has been slowing since the turn of the millennium. Economic policy that bolsters stability in the economy is a vital factor for productivity growth. Share Email Twitter Facebook Linkedin Google+
How can we avoid a negative equilibrium of low growth and low inflation? Slower-than-target inflation and a persistent decline in inflation expectations are key challenges for monetary policy. A negative equilibrium of prolonged low inflation and zero interest rates would fundamentally weaken monetary policy’s room for manoeuvre in balancing fluctuations in the economic cycle. Share Email Twitter Facebook Linkedin Google+
