Note that the working-age population growth is now negative for the group comprising the advanced economies, China and some eastern European economies. Given these trends in working-age population, potential growth rates also need to be revised downwards. As chart 5 shows, productivity growth has slowed in emerging markets as well. The big question then is: is it necessary to keep interest rates so low—or indeed, negative—in the advanced economies to stimulate growth? The advanced economies haven’t really recovered from the financial crisis and even the emerging economies have slowed.

Source: Mint July 03, 2016 19:07 UTC