What are the most likely causes of secular stagnation in the sense of stalling economic growth?
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Secular stagnation, characterized by stalled economic growth, is likely caused by a combination of factors. Firstly, there is a concern regarding persistent stagnation due to structural weaknesses in aggregate demand, leading to declining potential growth . Additionally, the aging population and declining working-age population contribute to this phenomenon, emphasizing the relevance of immigration as a potential solution . Furthermore, the impact of societal aging on economic slowdown in advanced economies is evident, although a direct causal link remains unproven . Overall, the interplay of inadequate demand, demographic shifts, and structural changes in central economies, such as population aging and globalization exhaustion, collectively contribute to the challenges of secular stagnation and the stalling of economic growth .
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| Papers (5) | Insight |
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8 Citations | Secular stagnation in developed economies is primarily attributed to factors like slow population growth, aging demographics, excessive debt, and structural changes impacting demand and growth potential. |
| Secular stagnation in economic growth is likely caused by factors such as trade openness, employment population growth rate, industrial structure, and national savings rate, as indicated in the research findings. | |
| Secular stagnation in economic growth is likely caused by a persistent decline in productivity growth, rooted in a structural weakness of aggregate demand rather than just a supply-side issue. | |
| Secular stagnation in economic growth is likely caused by diminished long-run growth potential, increasing aggregate demand shortages, lowering short-term interest rates, and immovable unemployment rates. | |
| Secular stagnation in economic growth is likely caused by demographic ageing trends and their impact on investment, profits, and social spending, rather than just the absence of population growth. |
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