September 30, 2021, Opinion: "The great inflation debate — is it sustained or transitory? — is missing a piece: productivity growth. The ability to produce more with the same or fewer inputs “isn’t everything”, Nobel Prize-winning economist Paul Krugman says, “but in the long-run it is almost everything”. It is likely that productivity growth has accelerated during the pandemic, which should take upward pressure off prices. It could also raise the long-run neutral interest rate for the world’s largest economies, giving their central banks more room to manoeuvre than we appreciate."

HKS MRCBG Senior Fellow - Megan Greene