It now says the economy can grow on average by 2.5% each year, an increase of 0.25%.
And the stellar productivity figures increase the pace at which the economy can grow without fuelling inflation.
The Fed wants time to see whether the economy can grow fast enough to drive sustained improvement in the job market, he said.
On the other hand, if you think the economy can grow at 5% a year without triggering inflation, then the path is clear.
As in 2004 and 2005, we think other parts of the economy can grow fast enough to offset the transition away from autos.
In fact, the rate at which the economy can grow will be hampered by a reduced willingness of banks to lend, a reduced amount of spending by federal, state and local governments, reduced consumption from many still-financially-overstretched American citizens who also face elevated gas prices, and from a reduced willingness of businesses to invest in the face of uncertainty regarding future tax and regulatory policies.
Also, compared with a few years ago, the economy can henceforth grow faster without risk of inflation.
Those productivity gains have led many economists to believe the economy can now grow at a faster pace than before without fanning inflation.
As a result of his analysis Daly says that we must have a steady state economy: the economy can only grow as fast as better technology allows us to add more value to or be more parsimonious with the use of those limited resources that we can use.
And the focus is on what we can do to grow the economy and create jobs -- what he can do, and what he can do working with Congress to grow the economy and create jobs.
Furthermore he wants us to also have faith that the Obama administration can grow the economy so that the deficit sooner rather then later drops to what he considers a sustainable half a trillion a year.
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The better educated a country's people are, the faster its economy can grow.
Her calculations also imply that the economy can continue to grow apace for some time before the Fed needs to worry about labour shortages, wage hikes and inflationary pressure.
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China has excess commercial properties, and many are highly leveraged, but if the economy can continue to grow at 7% to 9% per year, the excess in most regions can be systematically absorbed.
It is far gloomier, for instance, than that envisaged in the EU retrenchment programme, which assumes that Greece will get its deficit below 3% of GDP in three years and that the economy can continue to grow as it does so.
What they try and do is actually shrink - to use the ghastly phrase, deleverage - and when banks deleverage and when money isn't going to households and businesses those households and businesses can't spend, they can't invest and frankly the economy can't grow.
Higher productivity, the faster Mr. Bernanke can let the economy grow without raising interest rates.
We need to resolve this, and we can get on with the task of making sure we are doing everything we can to grow the economy and create jobs.
And we've also got a couple of small business owners, because one of the things I want to talk about is how we can grow the economy and get people back to work, and so who better to hear from than a couple of small business owners.
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He has been focused primarily on, therefore, his job as President and the things he can do to help the economy grow, working with Congress and through executive action, to help the economy create jobs, to ensure that our nation is secure and Americans both at home and abroad are secure, and I also said that as the year progressed, his engagement in campaign activities would increase.
We focus on trends, and we focus on the work that we can do to help the economy grow and to help it create jobs.
And that is why, as I mentioned earlier, his focus has been so narrowly keyed into the measures that we can take to grow the economy and create jobs.
But how can the economy grow at 0.9% in 2012, yet unemployment decline?
These are the reasons the Fed feels like they can continue to stimulate the economy and grow the balance sheet.
The key to our economic recovery is investing in the middle class so that we can grow our economy from the middle out, and how that stands in pretty stark contract to the policies that are being advocated by the other side.
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White House Business Council roundtables are an opportunity for Council members to hear directly from business leaders around the country about their ideas for how we can continue to grow the economy, put Americans back to work, and win the future.
In a market economy, consumer demand can never be inadequate for the economy to grow and prosper.
If we can grow the economy faster and create more jobs, then everybody is swept up into that virtuous cycle.
Politicians, newscasters and pundits are united around an idea I find wacky: that we can grow the economy forever on our finite planet.
This election will change very little in real terms, the things that matter, like whether the U.S. economy can grow or will face a very real crisis and a true depression.
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