Jump to ContentJump to Main Navigation
Progress and ConfusionThe State of Macroeconomic Policy$
Users without a subscription are not able to see the full content.

Olivier Blanchard, Raghuram G. Rajan, Kenneth S. Rogoff, and Lawrence H. Summers

Print publication date: 2016

Print ISBN-13: 9780262034623

Published to MIT Press Scholarship Online: January 2017

DOI: 10.7551/mitpress/9780262034623.001.0001

Show Summary Details
Page of

PRINTED FROM MIT PRESS SCHOLARSHIP ONLINE (www.mitpress.universitypressscholarship.com). (c) Copyright The MIT Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in MITSO for personal use.date: 25 September 2021

Rethinking Secular Stagnation after Seventeen Months

Rethinking Secular Stagnation after Seventeen Months

(p.29) 3 Rethinking Secular Stagnation after Seventeen Months
Progress and Confusion

Lawrence H. Summers

The MIT Press

This chapter argues that secular stagnation—a chronic excess of savings over investment—is an important risk throughout the developed world. It contrasts the secular stagnation viewpoint with alternative explanations of recent trends: the debt supercycle view and the savings glut view. The chapter makes a case for pro-productive investment policy as way to absorb global savings in a satisfactory way, while also warning about the risks of using monetary policy to achieve negative real interest rates.

Keywords:   secular stagnation, debt supercyle, savings glut, global economy, investment policy, monetary policy, negative interest rates

MIT Press Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.