Recovery and Productivity

From the office next door, Barry Eichengreen writes:

A Productivity Boom-in-Waiting?: BERKELEY – A double-dip recession is one thing, but a lost decade is something far more sinister. In the United States, there is growing concern that the worst recession since the Great Depression has damaged the economy’s capacity to grow.... Having been burned by the crisis, banks have tightened their lending standards.... A more limited supply of bank credit will mean higher capital costs......