Posted 2/17/2024, 12:00:00 PM
2023 Productivity Boom Could Slow Inflation Without Recession
- Productivity growth in 2023 may explain how inflation slowed without triggering a recession
- If productivity is strong, the economy can grow without increased inflation
- Reasons for 2023 productivity growth could be AI adoption, companies cutting costs, or a combination
- Productivity is hard to measure, especially for services, so the full impact is still uncertain
- Higher productivity could support wage growth without raising inflation going forward