Between 1980 and 1995, TFP for the whole economy grew on average by 1.5%, before declining to 0.8% between 1995 and 2007. 5 And private sector services significantly contributed to this decline. Indeed, TFP growth in these services slowed down from 0.6% between 1980 and 1995 to -0.1% between 1995 and 2005.
Still others have suggested that the potential  BIS central bankers’ speeches  1  costs of ultra-expansionary monetary policies are likely to outweigh their benefits (Borio, 2015), particularly in cases where low inflation mostly reflects positive supply shocks.1 In principle it is true that there are times when monetary policy should simply “look through” a few consecutive observations of low, or even negative, inflation.