Sometimes it takes only a few minutes to change the way we think about things. A month ago, Larry Summers spent about ten minutes at an IMF research seminar questioning why US economic growth was stagnant.
He said that since the end of the financial crisis there has been no evidence of growth that would restore economic equilibrium at the level of full employment. This is what he called “secular stagnation”.
His remarks have shaken the economic profession and media more than all the learned lectures and policy papers published since the financial crisis began. He has reshaped our understanding of the economic world we live in.
That’s no small achievement for a ten minute address.
It seems to me that he is right. — Full Story at Irish times —