mardi 7 avril 2015
IMF says Summers is right—and Bernanke is wrong—about economic stagnation
Posted on 21:22 by nice news
The biggest debate in the economics world—whether advanced economies like the United States or the European Union are doomed to stagnation—has pitted former US Treasury secretary Larry Summers against former Federal Reserve chairman Ben Bernanke. One Nobel prize-winning economist already has weighed in to take Summers’ side over Bernanke’s. Now, the IMF is piling on.
Summers has proposed “secular stagnation” (pdf) as the explanation for economic weakness since the 2008 recession: Private investment is falling because firms see slow population growth and innovation as a sign that future returns aren’t likely, creating a self-fulfilling prophecy of slow growth. His answer is more government investment—to jump-start demand, and the economy.
Summers has proposed “secular stagnation” (pdf) as the explanation for economic weakness since the 2008 recession: Private investment is falling because firms see slow population growth and innovation as a sign that future returns aren’t likely, creating a self-fulfilling prophecy of slow growth. His answer is more government investment—to jump-start demand, and the economy.
IMF says Summers is right—and Bernanke is wrong—about economic stagnation
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