12 March 2001, 10:34 Fed's Gramlich: US productivity linked to longer-term growth
Orlando, Fla., March 11 (BridgeNews) - Productivity gains will lead to
higher U.S. economic growth in the longer term, Federal Reserve Gov.
Edward Gramlich told a business group late Sunday. He reiterated that the
central bank must be flexible enough to respond to both inflationary and
recessionary moves.
However, Gramlich failed to elaborate on the outlook for the U.S. economy
or monetary policy.
* * *
The bulk of Gramlich's speech to the Commonfund Forum 2001 focused on
the spurt in productivity growth, which he said, "can be attributed
largely to a combination of an investment boom and a technological
revolution."
Gramlich's comments were largely unchanged from a speech he delivered
in London on the same topic on Feb. 20.
He reiterated that changes in productivity will require "the
central bank to respond to this multiple-variable complexity" as it
changes not only labor markets but also capital stock, exchange rates, and
real interest rates. But once again, Gramlich did not elaborate further.
End
Copyright 2001 Bridge Information Systems Inc. All rights reserved.
© 1999-2024 Forex EuroClub
All rights reserved