Low interest rates, capital flows, and declining productivity in South Europe

Gopinath, Gita, Kalemli-Ozcan, Sebnem, Karabarbounis, Loukas, Villegas-Sanchez, Carolina, (2015), “Low interest rates, capital flows, and declining productivity in South Europe”,  Voxeu, 28 Σεπτεμβρίου

Joining the Eurozone was once a near unquestionably good idea. Now, the costs of joining the monetary union are under close scrutiny. This column takes a slightly different tack, presenting an alternative perspective on how joining the euro has impacted productivity in southern Europe. It turns out that capital wasn’t allocated efficiently across firms after cheap borrowing at low interest rates, impacting total factor productivity.

Σχετικές Αναρτήσεις

• Tenebrarum, P. (2014) “The Consequences of Imposing Negative Interest Rates“, Acting Man Blog, 21 Νοεμβρίου.
• Borio, C. & Disyatat, P. (2014) “Low interest rates and secular stagnation: Is debt a missing link?“, VoxEU Organisation, 25 Ιουνίου.