Productivity growth has slowed across advanced, emerging market and low-income countries at a time of significant innovation and technological change. This is expected to negatively affect the long-term potential output. The generally low level of global inflation and wage growth, especially in advanced economies despite the fact that the output gap is closing, is a puzzle for monetary policy makers.
Of course, it sometimes makes sense to interpret rules against the background of national special features – but sometimes it doesn’t. We therefore have to review all these options very carefully and keep only those options which truly reflect the peculiarities of various markets and banks, while allowing all others to expire.