Lower real interest rates may harm productivity growth, researchers say
Spain and Italy have suffered low or negative productivity growth since at least 1999, paper says
Lower real interest rates may reduce productivity growth, a working paper published by the Banque de France argues.
In The pre-great recession slowdown in productivity, Gilbert Cette, John Fernald and Benoît Mojon look at data on productivity in the US and the four largest eurozone economies: Germany, France, Italy and Spain.
Total-factor productivity (TFP) in Italy and Spain "has been about zero or even negative", they find, "since at least the introduction of the euro in 1999". Some have
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