ACTV - On My Mind: Productivity Boom - New Dawn Or False Dawn?
2024-02-08 04:17:00 ET
Summary
- US productivity growth accelerated sharply over the course of 2023. Financial markets have been paying close attention to various measures of inflation, wage growth, gyrations in employment and unemployment, and consumer and business confidence.
- Over the past decade, proponents of the Secular Stagnation hypothesis argued that structurally lower productivity growth would continue to contribute to weak economic growth and permanently low interest rates.
- Could the productivity growth acceleration recorded in the later part of 2023 represent a turning point, a move toward the 3% rate of that previous golden decade?
By Sonal Desai, Ph.D., Chief Investment Officer, Franklin Fixed Income
Franklin Fixed Income CIO Sonal Desai discusses why the recent acceleration in productivity growth might prove durable, leading to higher potential returns on real investment and a higher equilibrium interest rate. ...
On My Mind: Productivity Boom - New Dawn Or False Dawn?