Secular stagnation in the open economies: How it spreads, how it can be cured

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Abstract

The secular stagnation hypothesis suggests that low interest rates may be the new normal in years to come. This column argues that this prospect should not only lead to a major rethinking of policy from the perspective of individual economies, but also a major rethinking about monetary and fiscal policy in the international context, the role of international capital flows, and the role of policy coordination across borders. In times of secular stagnation, events such as Brexit or the recent turbulence in Turkey have much larger spillover effects than under normal circumstances.

Citation

Eggertsson, Gauti B., and Lawrence H. Summers. “Secular Stagnation in Open Economies: How It Spreads and How It Can Be Cured.” VoxEU - CEPR, July 22, 2016.

@online{eggertsson_summers_2016,
  author       = {Eggertsson, Gauti B. and and Summers, Lawrence H.},
  title        = {Secular Stagnation in Open Economies: How It Spreads and How It Can Be Cured},
  year         = {2016},
  month        = {July},
  url          = {https://cepr.org/voxeu/columns/secular-stagnation-open-economies-how-it-spreads-how-it-can-be-cured},
  note         = {Accessed: ...}
}