Monetary Policy in an Era of Low Average Growth Rates
Economic growth in the euro area has been sluggish since the onset of the global financial crisis of 2008. While some of this sluggishness reflected cyclical patterns, ongoing weak productivity growth and demographic factors point to slow average growth rates for the euro area in the coming decades. This will most likely translate into a lower equilibrium real interest rate. The ECB should follow the Federal Reserve in providing estimates to the public of average nominal interest rate it expects to set over the long term and that this is likely lower than average rates during the pre-crisis era. The ECB should continue advocating for growth-boosting structural reforms but should also consider advocating for higher immigration levels to improve Europe’s demographic profile and growth potential.
Uitgebreide analyse
Externe auteur
Professor Karl Whelan
Nadere informatie over dit document
Publicatietype
Beleidsterrein
Zoekterm
- Amerika
- bruto binnenlands product
- centrale bank
- ECONOMIE
- economische analyse
- economische geografie
- economische groei
- economische situatie
- financieel beheer
- financiële instellingen en krediet
- FINANCIËN
- GEOGRAFIE
- monetair beleid
- monetaire economie
- nationale boekhouding
- ONDERNEMING EN CONCURRENTIE
- politieke geografie
- raming op lange termijn
- rentabiliteit
- rente
- Verenigde Staten