HKS Affiliated Authors
Frank and Denie Weil Director of the Mossavar-Rahmani Center for Business and Government
Charles W. Eliot University Professor
Excerpt
Excerpt
Preparing for the Next Recession. Lawrence Summers, December 6, 2015, Opinion. "While debates about the role of secular stagnation in current economic conditions continue to rage, there is now almost universal acceptance of a crucial part of the argument — that the “neutral interest rate” has declined substantially and is likely to be lower in the future than in the past throughout the industrial world because of growing saving relative to investment. The idea that real interest rates — that is, interest rates adjusted for inflation — will be lower going forward is reflected in the pronouncements of policymakers such as Federal Reserve Chair... " Link