Exploring the Impact of Inflation and Interest Rates on Productivity

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This chapter explores how rising inflation and interest rates influence productive capital allocation and productivity growth. It discusses theoretical concepts around investment decisions and highlights skepticism regarding the empirical evidence supporting these claims.

Leading economist Chad Syverson speculates about the ingredients in productivity’s secret sauce.

In this episode of the McKinsey Global Institute’s Forward thinking podcast, co-host Janet Bush talks with Chad Syverson. Syverson is George C. Tiao Distinguished Service Professor of Economics at the University of Chicago Booth School of Business. His work focuses on the interactions between firm structure, market structure, and productivity.

In this podcast, he covers topics including the following:

Why productivity is important
How the world economy is doing on productivity
What major themes of our age, from the path to net zero to trade fragmentation and aging, could impact productivity
The potential role of AI to change the game for productivity
How productivity growth is diffused

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