…rates after World War II, and hence a persistent shortage of demand — hence the secular stagnation theory briefly prominent. (There was even an early Heinlein novel built in part…

Paul Krugman is honest in his search to explain secular stagnation, but he is missing a crucial piece to the puzzle. And thus he comes to an incomplete conclusion. But…

…borrowing to bank lending rates. In the United States, households have access to a number of different saving options with varying return rates greater than returns on bank savings’ accounts….

I was reading today Paul Krugman’s article, Why Weren’t Alarm Bells Ringing? He is painting a picture of how the crisis formed and secular stagnation followed. It seems that he…

…increase saving rates. Now he is obsessed with the risk if secular stagnation. Top economists are now arguing that a high tendency to save causes stagnation and instability. Yet the…

…but it would do that too. end update Kenneth Rogoff argued that persistently extremely low safe interest rates are not proof of secular stagnation and do not necessarily imply that…

…below the optimum since 1982. Often well below. Not coincidentally, this is the period of time which constitutes what Tyler Cowen calls the Great Stagnation. 6. The view that lower…

…wait. Watson’s 40 percent figure compares average annual damage with some of the better recent years of growth. Even excluding years of recession and stagnation, in which growth was less…

…suspect that economists are jumping the gun in calling for a recession in the near term. We are more likely to see just plain economic stagnation rather than a recession….

…Summers on secular stagnation, Delong and Summers on the Keynesian Laffer Curve and Blanchard and Summers on hysteresis). Summers makes 4 arguments. Don’t blame me for the fact that the…