A Contagious Malady? Open Economy Dimensions of Secular Stagnation. Issue Volume 64:Issues 4(2016) (November 2016)
- Record Type:
- Journal Article
- Title:
- A Contagious Malady? Open Economy Dimensions of Secular Stagnation. Issue Volume 64:Issues 4(2016) (November 2016)
- Main Title:
- A Contagious Malady? Open Economy Dimensions of Secular Stagnation
- Authors:
- Eggertsson, Gauti
Mehrotra, Neil
Singh, Sanjay
Summers, Lawrence - Abstract:
- Abstract Conditions of secular stagnation—low interest rates, below target inflation, and sluggish output growth—characterize much of the global economy. We consider an overlapping generations, open economy model of secular stagnation, and examine the effect of capital flows on the transmission of stagnation. In a world with a low natural rate of interest, greater capital integration transmits recessions across countries as opposed to lower interest rates. In a global secular stagnation, expansionary fiscal policy carries positive spillovers implying gains from coordination, and fiscal policy is self-financing. Expansionary monetary policy, by contrast, is beggar-thy-neighbor with output gains in one country coming at the expense of the other. Similarly, we find that competitiveness policies including structural labor market reforms or neomercantilist trade policies are also beggar-thy-neighbor in a global secular stagnation.
- Is Part Of:
- IMF economic review. Volume 64:Issues 4(2016)
- Journal:
- IMF economic review
- Issue:
- Volume 64:Issues 4(2016)
- Issue Display:
- Volume 64, Issue 4 (2016)
- Year:
- 2016
- Volume:
- 64
- Issue:
- 4
- Issue Sort Value:
- 2016-0064-0004-0000
- Page Start:
- 581
- Page End:
- 634
- Publication Date:
- 2016-11
- Subjects:
- E31 -- E32 -- E52 -- F33
Foreign exchange -- Periodicals
Commerce -- Periodicals
Currency question -- Periodicals
International finance -- Periodicals
International economic relations -- Periodicals
332.152 - Journal URLs:
- http://www.springer.com/economics/journal/41308 ↗
http://www.palgrave.com/home/index.asp ↗ - DOI:
- 10.1057/s41308-016-0019-8 ↗
- Languages:
- English
- ISSNs:
- 2041-4161
- Deposit Type:
- Legaldeposit
- View Content:
- Available online (eLD content is only available in our Reading Rooms) ↗
- Physical Locations:
- British Library DSC - 4369.262480
British Library DSC - BLDSS-3PM
British Library HMNTS - ELD Digital store - Ingest File:
- 10044.xml