Secular stagnation: neither natural nor inevitable at the ZLB
We would have had a stronger recovery if we had had a bigger and better-designed stimulus. We would have had stronger aggregate demand if we had done more to address inequality, and if we had not pursued policies that increased it. And we would have had a more stable financial sector if we had regulated it better.
Beyond Secular Stagnation
By: Joseph Stiglitz – Columbia University
Secular stagnation: a political argument?
Stiglitz echoes conservatives like John Taylor in suggesting that secular stagnation was a fatalistic doctrine invented to provide an excuse for poor economic performance during the Obama years.
Setting the Record Straight on Secular Stagnation
By: Larry Summers – Harvard University
Was fiscal expansion the right response?
My response is that the right way to respond to financial crises is with policies that restore the value of private assets. And the right way to prevent financial crises in the first place is to intervene in the financial markets to moderate swings in asset values and to head off recessions before they happen.
Secular Stagnation Revisited
By: Roger Farmer – University of Warwick
Summers: some evidence on secular stagnation at the ZLB
Eggertsson and al. show that aging has a positive effect on output growth per capital at positive interest rates, due to capital deepening. This correlation breaks down and reverses itself when the zero lower bound is reached. They argue that this is the key prediction of the secular stagnation hypothesis.
Aging, Output per capita and Secular Stagnation
Authors: Gauti B. Eggertsson, Manuel Lancastre, Lawrence H. Summers
From: Brown University, Harvard University
Image courtesy of Koren Shadmi
