"18 Also, to repeat myself, policies to boost productivity growth and the longer-run potential of the economy are more likely to be found in effective fiscal and regulatory measures than in central bank actions. This statement is true not only in the United States, but also around the globe.
This increase in labour costs coincided with a period of slower growth in labour productivity. Since 2005, estimated labour productivity growth has averaged less than ½ per cent per year, compared with average growth of 2 per cent over the 1990s.