Monday, September 8, 2014

Secular stagnation?

“Secular stagnation” is an emerging topic in macroeconomics.  It is most often associated with Lawrence Summers, who wrote a recent blog post on the subject: http://www.washingtonpost.com/opinions/lawrence-summers-supply-issues-could-hamper-the-us-economy/2014/09/07/274ce00c-352f-11e4-9e92-0899b306bbea_story.html.


Summers’ post notes that his conceptualization of secular stagnation looked mostly at the demand side of the macroeconomy (for example, the Zero Lower Bound on interest rates), but that others – he mentions Robert Gordon – emphasize supply side considerations, like an aging population and the end of large increases in women’s labor force participation.

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