Benchmark
How Financial Vulnerability Helped to Curb Global Productivity
- The slowdown has roots in leverage ratios, credit conditions
- Crisis-era rollover risk also cut intangible investment
Productivity has slumped the world over, and credit conditions might be at least partly to blame.
That's the first finding we outline in this week's economic research wrap, and it's an important one: economists have been scratching their heads for years about why efficiency improvements have slowed so much, and this might explain as much as a third of the pullback.