3 First, if firms and households believe that future growth will be lower, they may refrain from undertaking consumption and investment in the present and thereby, reduce economic potential further. Additionally, it makes surmounting the large debt overhang which prevails in the global economy more arduous.
There would also very likely be societal implications, as lower economic growth would not be able to create enough jobs for citizens and may exacerbate income inequality. But it would also have significant implications for the conduct of monetary policy.