Authors:

  • Gita Gopinath

Excerpt

The Reallocation Myth. Gita Gopinath, September 8, 2017, Paper, "This is a very interesting and provocative paper on an important topic. Growth in advanced economies of the world have settled into a tepid pace of 1%-2% a year associated with a decline in total factor and labor productivity over the past decade. It is imperative to understand the sources of low productivity growth and to evaluate what policies can rejuvenate growth. The potential growth rate of the economy has implications for measures of output gaps and real rates and therefore has implications for monetary policy. Chang-Tai and Pete in their ambitious paper take up this challenging task for the U.S. economy." Link