Indeed, these changes reflect serious challenges not only to the functioning of the American economy over the coming decades, but also to some of the ideals that undergird the nation’s democratic heritage. This evening I will address in some detail four particularly important developments: 1. Productivity growth has slowed. As a result, the overall economic pie is expanding more slowly than before. 2.
The latter came close to 50% of the outstanding amount of nearly 2 trillion euros of interbank claims of EMU member countries banks in 1999.19 By contrast, the repo markets have largely remained segmented due to collateral settlement problems.20 Foreign demand for short-term securities such as treasury bills and commercial paper tends to be low, because they are more commonly used as cash substitutes than for investment purposes.