On Friday the RBA also repeated its forecast for below trend growth for the country.
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He sees the trend growth rate easing over the coming decade, but not dramatically.
Raising Japan's trend growth rate would be difficult, especially as the population ages and shrinks.
Low productivity remains its Achilles heel, with no clear signs of any recent pick-up in its trend growth.
That would require a decade well above trend growth to balance things out.
"With the economy in a persistent state of below-trend growth, the Fed has cover" to cut interest rates, DeKaser says.
The economics research group said that the UK would return to its trend growth rate of 0.2%-0.3% in the coming months.
Note that the trend growth in earnings per share was well below the smoothed line we saw in the previous graph.
But he goes further than just believing that America's long-term trend growth rate is, say, 2-3% a year rather than 4-5%.
Even if economies do not dip into recession, prolonged below-trend growth would push up unemployment and cause inflation to fall further.
The Bank is forecasting a rapid economic expansion of nearly 3.5% this year, well above the trend growth rate of 2.5%.
Maybe five percent below trend line growth in slow economic times and five percent above trend line growth in strong economic times.
Even if, as the government hopes, it bounces back, plenty of people worry that trend growth is now unlikely to be much above 7%.
The research of Reinhardt and Rogoff demonstrates that when the government debt-to-GDP level gets to about 90%, trend growth seems to drop by about 1%.
If so, output will in total have fallen by almost one-third relative to productive potential (as measured by the economy's trend growth rate of 7%).
And even the OBR's modest projections may be overly optimistic, especially if the U.K.'s debt binge of the past 15 years artificially inflated trend growth.
Taken together, some economists think those two factors will mean the economy will struggle to reach trend growth this year, defined as between 2.25% and 2.5%.
It called for both governments to "maintain a clear focus on tackling the barriers to growth" and support business through a prolonged period of below-trend growth.
Moreover, the trend growth in unit labor costs is less than 1% annualized, meaning there is a cap on wages which is a drag on consumer spending.
India's acceleration in trend growth, from an average of about 6% in the late 1980s to as much as 10% (and, some hoped, beyond), may sound modest.
"Coupled with the recent deterioration in the forward-looking indicators, it is becoming increasingly clear that consensus forecasts of trend growth this year are likely to prove too optimistic, " says Jonathan Loynes, chief UK economist at Capital Economics.
The World Bank argues in a new report that tighter financial conditions, thanks to tougher regulation and higher risk aversion, could reduce developing countries' trend growth by 0.2-0.7 percentage points over the next five to seven years.
All of the above suggests Russian trend growth might be able to stick to the 4% area I thought back in 2008, and this means by 2020 Russia will be a lot bigger, and its status amongst the international elite will rise.
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"The labour market data are disappointingly softer overall and fuel our suspicion that unemployment is likely to trend up gradually in 2011 in the face of below-trend growth and increasing job losses in the public sector, " said Howard Archer at IHS Global Insight.
The main conclusion from this demographic work is that, barring a new increase in female labor force participation or a significant increase in the growth rate of the population, these demographic factors point towards a further decline in trend growth of employment and hours in the coming decades.
The bulk of growth comes from the increase in our population of about 3 million people and the growing need to simply replace stuff that is wearing out, not enough to get the economy back to trend growth much less the strong growth needed to restore employment to 2007 levels.
As with technology, it is easier to see how deregulation might raise the trend of growth, rather than stabilise output around the trend.
And if the Reagan policies of the 1980s were sufficiently different from those of the previous decade to generate a growth premium, cannot a case be made that the policies of the Obama administration are sufficiently different from those of the previous quarter-century to alter the growth trend and impose a growth discount?
One could take comfort from the long perspective that the U.S. will get back to trend GDP growth of 3.3% and that earnings will go back to trend, as I illustrated in a previous chart.
Gordon insists it's coming, because the formerly potent stimulus of above-trend borrowing growth is about to be removed.
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