New York Times (11/17/13) Paul Krugman
A number of economists have been speculating that the current depressed economy may persist as the norm in what they term “secular stagnation.” This view was voiced by Larry Summers at the International Monetary Fund’s annual research conference. Summers pointed out that while the financial crisis ended more than four years ago, the economy is still depressed.
Furthermore, before the crisis, despite a housing bubble and a debt bubble, the overall economy was mediocre. Summers concluded that the economy’s normal condition is of insufficient demand, or mild depression, and that full employment will only occur when driven by a bubble.
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