This is also indicated by the previously mentioned firm-level analysis conducted by the Eurosystem’s CompNet, which suggests that there is strong heterogeneity of firm labour productivity within and across countries. 7 This period was also characterised by an overestimation of the sustainability of consumption and investment growth, of future productive capacity and of potential growth in the long term.
Gaspar, Vitor, Frank Smets, and David Vestin (2006). "Adaptive Learning, Persistence, and Optimal Monetary Policy", Journal of the European Economic Association, vol. 4 (April-May), pp. 376-85. Giannone, Domenico, Lucrezia Reichlin, and David Small (2005). "Nowcasting GDP and Inflation: The Real-Time Informational Content of Macroeconomic Data Releases", Finance and Economics Discussion Series 2005-42. Washington: Board of Governors of the Federal Reserve System, October, www.federalreserve.gov/pubs/feds/2005.