secular stagnation Archives

aggregate demand, credit booms and busts, natural rate of interest, secular stagnation, ZIRP. interest rates

Booms & Busts, Economic Thought, The Fed & Central Banks

Why are Interest Rates so Low?

Larry White/July 6, 2016June 19, 2022

Since the financial crisis of 2007-09, and especially in recent months, Europe and the United States have seen zero and even slightly negative short-term nominal interest rates, and sub-zero risk-free real interest rates (see the figure below). In June I participated in a conference on “Zero Interest…

Claudio Borio, deflation, natural rate of interest, savings glut, secular stagnation

Economic Thought, Inflation & Deflation, Recommended Reading

Cato Journal: Revisiting Three Intellectual Pillars of Monetary Wisdom

Tom Clougherty/June 3, 2016June 19, 2022

A new issue of the Cato Journal, which collects the proceedings of last year’s Annual Monetary Conference, was released last week. Those proceedings include a paper by Claudio Borio, head of the Bank for International Settlement's monetary and economic department, which Alt-M readers may find particularly interesting….