The lows of the crisis years were, at the time, thought to represent a “new normal” of low growth and secular stagnation that only determined policy action could overcome. Now, some believe that structural reforms coupled with abovepotential growth are healing the scars of the crisis.
2/7  BIS central bankers' speeches  The implication of this view is that, as the global expansion strengthens, supply is expanding in tandem with demand and the output gap does not close. That is, we are chasing a moving target of potential output that keeps inflationary pressures in check.