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Recent Bank of England research has suggested this may have been a potent crisis propagation channel for smaller businesses during the crisis. 14  As asset  prices have recovered, however, this channel cannot explain the persisting productivity puzzle. A third channel through which the crisis might have slowed productivity is by hindering resource reallocation between firms and across sectors. 15  Flows of capital and labour between companies are one of the key  channels through which technology and ideas are diffused. 16  Since the crisis, rates of labour market churn  between companies have been low and the dispersion in rates of return across sectors has been high. 17  Both are consistent with lower rates of factor reallocation having contributed to low productivity. (c) Forbearance and monetary policy  Some have contended that productivity may have been held back by the actions of the authorities, in particular regulatory forbearance and accommodative monetary policies. By supporting low-productivity companies who would otherwise have failed, policy actions may have prevented the “creative destruction” of 18  firms. Certainly, the level of company liquidations and firm exits has remained low in many countries since  the financial crisis, probably lower than would have been expected given the path of GDP. A number of studies have considered the evidence on the impact of regulatory and monetary policies on firm death and productivity.