Is Secular Stagnation the Future for Europe?

Nicholas Crafts

CAGE Online Working Paper Series from Competitive Advantage in the Global Economy (CAGE)

Abstract: There are at least two distinct (but related) concepts of ‘secular stagnation’. One concerns a possible long-run term trend growth failure and the other a permanent liquidity trap. In the context of poor productivity performance, both are legitimate fears for European economies although technological pessimism is misguided and scope for catch-up is still considerable. In each respect, however, policy responses that have worked in the past are available to address the problem. If European economies were to submit to either type of secular stagnation, it would be a result of policy failure rather than because it is inevitable.

Keywords: liquidity trap; real interest rate; secular stagnation; technological progress; trend growth (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:cge:wacage:225

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