Productivity, a long-term driver of economies and incomes, has lagged during the recovery from the Great Recession. However, the 2008 financial crisis isn’t the sole cause of the decline. In fact, the slowdown in productivity improvements in major developed countries was already underway before 2007. This working paper from economists Gilbert Cette, John G. Fernald and Benoit Mojon presents a thorough analysis of the precrisis mechanisms that caused efficiency gains to sputter. getAbstract recommends this authoritative study to policy makers and executives interested in understanding what propels productivity.
About the Authors
Gilbert Cette and Benoit Mojon are economists at the Banque de France. John G. Fernald is an economist at the Federal Reserve Bank of San Francisco.