Secularly Stagnated Economy

From GM-RKB
(Redirected from secular stagnation)
Jump to navigation Jump to search

A Secularly Stagnated Economy is a regional economy that low economic growth is the new macro economic norm.



References

2018

  • (Wikipedia, 2018) ⇒ https://en.wikipedia.org/wiki/Secular_stagnation_theory Retrieved:2018-9-7.
    • The secular stagnation theory was originally put forth by Alvin Hansen in 1938 to "describe what he feared was the fate of the American economy following the Great Depression of the early 1930s: a check to economic progress as investment opportunities were stunted by the closing of the frontier and the collapse of immigration". Warnings similar to secular stagnation theory have been issued after all deep recessions, but they usually turned out to be wrong because they underestimated the potential of existing technologies.[1] Secular stagnation refers to "a condition of negligible or no economic growth in a market-based economy". In this context, the term secular is used in contrast to cyclical or short-term, and suggests a change of fundamental dynamics which would play out only in its own time. Alan Sweezy described the difference:

      "But, whereas business-cycle theory treats depression as a temporary, though recurring, phenomenon, the theory of secular stagnation brings out the possibility that depression may become the normal condition of the economy."

      According to Seymour Harris (1943) "the idea of secular stagnation runs through much of Keynes General Theory".
  1. Pagano and Sbracia (2014) "The secular stagnation hypothesis: a review of the debate and some insights." Bank of Italy Questioni di Economia e Finanza occasional paper series number QEF-231.

2018b

2014

  • (Summers, 2014) ⇒ Lawrence H. Summers. (2014). “US Economic Prospects: Secular Stagnation, Hysteresis, and the Zero Lower Bound.” Business Economics 49, no. 2
    • ABSTRACT: The nature of macroeconomics has changed dramatically in the last seven years. Now, instead of being concerned with minor adjustments to stabilize about a given trend, concern is focused on avoiding secular stagnation. Much of this concern arises from the long-run effects of short-run developments and the inability of monetary policy to accomplish much more when interest rates have already reached their lower bound. This address analyzes contemporary macroeconomic problems and proposes solutions to put the U.S. economy back on a path toward healthy growth.