Monetary Policy in a World of Uncertain Productivity Growth
“This paper considers inflation forecasts for 2001 under two different assumptions about productivity growth. One assumption, the optimistic one, is that productivity growth has risen above its long-run historical average and that 2001 will see near price stability. The other, the pessimistic one, is that monetary policy itself has been a major factor influencing productivity growth. Accordingly, productivity growth is likely to fall to its long-run historical average and 2001 will see moderate inflation.” Read more.
Monetary Policy in a World of Uncertain Productivity Growth
Robert L. Hetzel
Via the Cato Institute.
