Doug has suggested that the restoration of profitability has had much to do with lower interest rates. If inflation is killed, will then not then raise real interest rates and undermine the recent profit rate hikes?
> - In 1929, productivity was growing rapidly. Today, productivity growth
> sucks. (Not to worry, though; new numbers are being made up even as we
A couple of weeks ago, Louis Utichelle of the NYT looked skeptically at the recently posted spike in productivity growth from 1.1% to 1.4%. He suggested that once we corrected for the business cycle and adopted a more realistic estimate of inflation, output has not increased sufficiently to justify an optimistic view of productivity growth.