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Don’t Get Into a Knife Fight with Larry Summers

September 4, 2018 Bilal 0

Don’t Get Into a Knife Fight with Larry Summers https://ift.tt/2wAYkUC Larry Summers is not happy with Joseph Stiglitz’s piece The Myth of Secular Stagnation, which argues that the idea of secular stagnation as put forward by Summers and others was little more than a mask for poor economic policy and performance under the Obama administration. Those responsible for managing the 2008 recovery (the same individuals bearing culpability for the under-regulation of the economy in its pre-crisis days, to whom President Barack Obama inexplicably turned to fix what they had helped break) found the idea of secular stagnation attractive, because it […]

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The Myth of Secular Stagnation | by Joseph E. Stiglitz

September 3, 2018 Bilal 0

The Myth of Secular Stagnation | by Joseph E. Stiglitz https://ift.tt/2BRnKT2 Those responsible for managing the 2008 recovery found the idea of secular stagnation attractive, because it explained their failures to achieve a quick, robust recovery. So, as the economy languished, a concept born during the Great Depression of the 1930s was revived. NEW YORK – In the aftermath of the 2008 financial crisis, some economists argued that the United States, and perhaps the global economy, was suffering from “secular stagnation,” an idea first conceived in the aftermath of the Great Depression. Economies had always recovered from downturns. But the […]

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Aging, Output Per Capita and Secular Stagnation — by Gauti B. Eggertsson, Manuel Lancastre, Lawrence H. Summers

September 2, 2018 Bilal 0

Aging, Output Per Capita and Secular Stagnation — by Gauti B. Eggertsson, Manuel Lancastre, Lawrence H. Summers https://ift.tt/2OtrmMH Aging, Output Per Capita and Secular Stagnation NBER Working Paper No. 24902 Issued in August 2018 NBER Program(s):Economic Fluctuations and Growth, Monetary Economics This paper re-examines the relationship between population aging and economic growth. We confirm previous research such as Cutler, Poterba, Sheiner, and Summers (1990) and Acemoglu and Restrepo (2017) that show positive correlation between measures of population aging and per-capita output growth. Our contribution is demonstrating that this relationship breaks down when the adjustment of interest rates is inhibited […]

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This is the most hopeful take on American productivity growth relative stagnation I have seen. I thought it was coheren…

August 31, 2018 Bilal 0

This is the most hopeful take on American productivity growth relative stagnation I have seen. I thought it was coherent and might well be right 20 years ago. I think it is coherent and might possibly be right today. But is that just a vain hope?: Michael van Biema and Bruce Greenwald (1997): Managing Our Way to Higher Service-Sector Productivity : “What electricity, railroads, and gasoline power did for the U.S. economy between roughly 1850 and 1970, computer power is widely expected to do for today’s information-based service economy… …But there is increasing concern because improvements in productivity growth are […]