Secular Stagnation: The Dismal Fate Of The Global Economy?
China has many levers to pull economically, and stagnation and lower potential growth are relative. But the global hunt for economic growth by central banks will be a persistent source of volatility in financial markets. Without the ability to jump start their economies using traditional monetary policies, central banks will use unconventional policies more often in attempts to remain competitive globally and search for increasingly elusive growth spurts. Larry Summers may have been more correct than he knew.