IMF calls for demand boost to avoid 'new reality' of lower potential

Larry Summers

The International Monetary Fund today said the world is facing a prolonged period of low growth that is "likely to be associated with low equilibrium real interest rates", warning that "monetary policy in advanced economies may again be confronted with the problem of the zero lower bound if adverse growth shocks materialise".

The IMF's intervention, including a call for demand-side measures, comes amid a live debate between former Fed chair Ben Bernanke and Larry Summers, the former Treasury sec

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