Central banks should not be spooked by low productivity growth into prematurely normalising monetary policy, the chief economist of the International Monetary Fund has said.
Speaking on January 10, Maurice Obstfeld examined one of the more complex policy puzzles that has emerged since the financial crisis – whether ultra-low, prolonged accommodative monetary policy contributed to lacklustre productivity growth.
“Monetary policies have probably had unintended side effects on the recent producti
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