Secular Stagnation: Facts, Causes and Cures

Coen Teulings, Richard Baldwin 15 August 2014

Six years after the Global Crisis, the recovery is still anaemic despite years of near-zero interest rates and extraordinary central bank manoeuvres. This eBook gathers the thinking of leading economists on whether ‘secular stagnation’ to blame.

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Contents

Introduction
Coen Teulings and Richard Baldwin 

Opening the debate

1 Reflections on the ‘New Secular Stagnation Hypothesis’
Lawrence H Summers

Three issues: Potential growth, effective demand, and sclerosis

2 Secular stagnation: A review of the issues
Barry Eichengreen

3 The turtle’s progress: Secular stagnation meets the headwinds
Robert J Gordon

4 Four observations on secular stagnation
Paul Krugman

5 Secular joblessness
Edward L Glaeser

Further on potential growth

6 Secular stagnation? Not in your life
Joel Mokyr

7 Secular stagnation: US hypochondria, European disease?
Nicholas Crafts

Further on effective demand

8 A prolonged period of low real interest rates?
Olivier Blanchard, Davide Furceri and Andrea Pescatori

9 On the role of safe asset shortages in secular stagnation
Ricardo J Caballero and Emmanuel Farhi

10 A model of secular stagnation
Gauti B. Eggertsson and Neil Mehrotra

11 Balance sheet recession is the reason for secular stagnation
Richard C Koo

12 Monetary policy cannot solve secular stagnation alone
Guntram B Wolff

Further on sclerosis

13 Secular stagnation: A view from the Eurozone
Juan F. Jimeno, Frank Smets and Jonathan Yiangou

Coen Teulings

Distinguished Professor of Economics, Utrecht University; CEPR Research Fellow

Richard Baldwin

Professor of International Economics at The Graduate Institute, Geneva; Founder & Editor-in-Chief of VoxEU.org; exPresident of CEPR

Events

CEPR Policy Research