Economics
Yellen Productivity Concern Shows Slump’s Theory-to-Policy Shift
- Fed chair tells lawmakers low productivity threatens outlook
- Views echo Gordon, who Yellen cites most of non-Fed economists
Fed's Yellen: Seeing Slightly Faster Wage Growth in U.S.
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Janet Yellen told Congress this week she’s seriously worried about productivity. A careful read of the footnotes in the Federal Reserve chair’s speeches reveals this as a concern she’s nurtured for while.
Since becoming Fed chief in February 2014, Yellen has referenced the work of Northwestern University economist Robert Gordon more than that of any other non-Fed economist aside from Ben Bernanke, her immediate predecessor. In economic circles, Gordon is famous for his theory that the rapid economic growth that characterized the 20th century is decelerating in the 21st amid less innovation and slower productivity gains.