The “collapse” of productivity growth could be a sizable risk to credit conditions, notes a Moody’s report. However, it remains unclear the extent to which different factors are causing these phenomena, with Moody’s pointing out that a certain “mismeasurement error” could be at play relative to technology’s impact on the economy. But this is only partial causation for the productivity decline, as the hangover from the 2008 global financial crisis lingers and structural issues such as an aging population are factors. Productivity growth is slowing Global growth is expected to continue its cyclical recovery, recording 3.1% in 2017 and notching…
Moodys: Concerning Collapse In Productivity Growth
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.