Repost: Higher GDP Growth in the Long Run Requires Higher Productivity Growth–St. Louis FED Regional Economist

US productivity growth 1970-2015

US productivity growth 1970-2015

A good overview of what drives productivity growth and why the U.S. is currently lagging compared to past periods. In essence, we have not had significant growth because we have not had technological innovations that translate into higher output. Bullard says that changes in monetary policy will not change productivity growth and suggests focusing on three areas (although he doesn’t have specific policy proposals.)

Source: Higher GDP Growth in the Long Run Requires Higher Productivity Growth

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