Thursday, September 1, 2016
Yes, Secular Stagnation Exists, But Part Of It Is Our Fault
Michael Spence describes the forces that slowing global economic growth. He places those forces into a category that he calls Secular Stagnation One (SS1). They present difficulties which have been difficult to reverse. However, he describes another form of secular stagnation (SS2) which we should be able to reverse. SS2 is the result of poor policy choices made by governments. These are forces which governments can address by making better choices. He suggests several approaches to dealing with SS2. Most of them are not new but they have been resisted by governments.