• Will Higher Interest Rates Lead to Higher Capital Productivity?

  • Jul 8 2022
  • Length: 20 mins
  • Podcast
Will Higher Interest Rates Lead to Higher Capital Productivity? By cover art

Will Higher Interest Rates Lead to Higher Capital Productivity?

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  • Summary

  • Periods of high real interest rates are historically associated with high productivity growth and a high marginal product of capital. We discuss to what extent this implies that the expected increase in real interest rates due to ECB tightening measures will increase the marginal product of capital and productivity growth.
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