Summers and Rachel set out fresh evidence on secular stagnation

Larry Summers
Larry Summers
Photo: Kevin Moloney/Fortune Brainstorm TECH

Neutral real interest rates have fallen by around 300 basis points “over the last generation”, despite offsetting action by fiscal authorities, Larry Summers and Łukasz Rachel say in a new paper.

The economists study why ballooning fiscal deficits, which would have been expected to raise real rates, failed to do so. They find that while neutral rates have fallen steadily in recent decades, the decline would have been much more rapid without action from the fiscal authorities, which raised the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: