Falling productivity and low interest rates may form vicious circle – BdF paper

banque-de-france
The Banque de France

Advanced economies may be trapped in a vicious circle of low interest rates and falling productivity, a working paper published by the Banque de France says.

In The circular relationship between productivity growth and real interest rates, Antonin Bergeaud, Gilbert Cette and Rémy Lecat investigate a possible cause of the slowdown in growth in advanced economies since the 1970s.

They put forward a hypothesis in which falling long-term real interest rates, mainly pushed downwards by demographic

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected]anking.com to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: