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Friday, June 05, 2015

'Secular Stagnation: The Time for One-Armed Policy is Over'

Willem Buiter, Ebrahim Rahbari, Joe Seydl at Vox EU:

Secular stagnation: The time for one-armed policy is over: Stagnation is gripping several of the world’s largest economies and many view this as secular, not transient. This column argues that many economies need both demand-side stimulus and supply-side reform to close the output gap and restore potential-output growth. A combined monetary-fiscal stimulus – i.e. helicopter money – is needed to close the output gap, and this should be accompanied with extensive debt restructuring, policies to halt rising inequality, and additional public infrastructure investment.

    Posted by on Friday, June 5, 2015 at 09:49 AM in Economics | Permalink  Comments (34)


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