The worldwide nature of the slowdown is documented in Organisation for Economic Co-operation and Development (2016), “New OECD Indicators Trace Productivity Growth Slowdown Pre- and Post-Crisis,” webpage, OECD, http://www.oecd.org/economy/newoecdindicatorstraceproductivitygrowthslowdownpre-andpost-crisis.htm. For a discussion of the effects of dynamism on productivity, see Lucia Foster, John Haltiwanger, and C.J.
Another concern associated with additional securities purchases is that substantial further expansion of the balance sheet could reduce public confidence in the Fed’s ability to execute a smooth exit from its accommodative policies at the appropriate time. Even if unjustified, such a reduction in confidence might lead to an undesired increase in inflation expectations, to a level above the Committee’s inflation objective.