ECB’s Mersch: central banks have failed to correctly assess growth potential
Central banks were “overreliant on pro-cyclical forecasts”, ECB board member says
Central banks in the developed world have failed to accurately assess the growth potential of their economies, Yves Mersch said in a speech at Harvard University.
Long-run potential growth figures for all major economies have fallen in recent years, the executive board member of the European Central Bank (ECB) said on October 12.
Consensus forecasts for growth over the next six to 10 years in the US had been 3.1% in early 2003, but the same figure now was just 2.2%, he said. Forecasts for long
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