Productivity Surged in Quarter 2

Looks like productivity surged in the second quarter up at a 6.4 percent annual rate. Rising productivity is basically good, but it means that either the economy is going to grow very rapidly because we’re now so productive, or else that modest growth is going to be accompanied by massive unemployment. And I don’t really know anyone who’s expecting very rapid growth in the near term.

The takeaway point, I think, is that the case is strong for the Fed and other central banks to continue dramatic measures aimed at boosting recovery.