King calls for radical shake-up to escape ‘low-growth trap’
Central bank models fail to appreciate demand-side secular stagnation
Politicians and central bankers need to radically rethink how they view blockages in the global economic system, if the world is to escape its current “low-growth trap”, said former Bank of England (BoE) governor Mervyn King today (October 19).
Persistent calls for ‘monetary activism’ – or even fiscal stimulus – to address sluggish economic growth are based on fundamentally flawed theory, said King during a Per Jacobsson Lecture address in Washington, DC.
He said if the world wanted to escape
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