TheStreet: Did Government Dithering Cause Secular Stagnation?
By SIMON CONSTABLE
The secular stagnation meme just got torpedoed.
Exceptionally high uncertainty over government policies around the globe is responsible for the period of sluggish growth we've seen since the financial crisis, according to new research which appears to refute the ideas of a former Treasury chief.
"The elevated levels of global policy uncertainty in the past five years compared even to the crisis years of 2008-09 is remarkable," states the October-dated paper titled "An Index of Global Economic Policy Uncertainty" by Steven Davis, professor of international business and economics at the University of Chicago Booth School of Business. Read more here.