economic stagnation

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The degree of “great” in “Great Stagnation” is a choice variable

SAO PAOLO | By Marcus Nunes via Historinhas | Scott Sumner writes “What kind of Great Stagnation?” It seems to me that the Krugman/Summers view has three big problems: The standard textbook model says demand shocks have cyclical effects, and that after wages and prices adjust the economy self-corrects back to the natural rate after a few years. Even if it takes 10 years, it would not explain the longer-term stagnation that they believe is occurring.

economic stagnation

USE-ME to avoid secular economic stagnation

SAO PAULO | Benjamin Cole via Marcus Nune’s Historinhas | Well, if a Martin Wolf can call for permanent QE by all Western governments, and if a John Cochrane can suggest the U.S. Federal Reserve should completely liquidate the U.S. national debt, than I guess my USE-ME program is worth trotting out as well. I mean anything goes these days, no?