(2021) “Monetary Policy in Times of Crisis: A Tale of Two Decades of the European Central Bank”, Oxford University Press. 17. See Rajan (2006), which studies changes in the portfolio composition of banks from less-risky to more-risky assets, known as the “search for yield”.
Early retirement policies also have a significant negative effect on labour supply and, hence, on the participation and employment rates. Growth in labour productivity should be supported by policies that aim at promoting innovation and technological change. For that purpose, policies should focus on allowing the efficient functioning of entrepreneurial activities, removing for instance entry restrictions and improving labour market adaptability.