What if the economists are all wrong on productivity?
Are all the benefits of increased productivity hidden by deflation? Private equity investor, Glenn Hutchins, writing in the Financial Times, explains the gains Economists are overlooking from technological improvements. "Paradigm shifts require radical rethinking. Today’s economy is undergoing an epochal shock driven by technological change and globalisation. That suggests that the negative nominal rates now common in much of the world may be normal and could be with us for a long time. Policymakers must adapt their world view and tools accordingly."
From Financial Times