Secular stagnation and its existence in the euro area post-financial crisis

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dc.contributor Aalto University en
dc.contributor Aalto-yliopisto fi
dc.contributor.advisor Mustonen, Mikko
dc.contributor.advisor Murto, Pauli Perälä, Sanna 2020-02-09T17:00:14Z 2020-02-09T17:00:14Z 2019
dc.description.abstract Abstract This literature review discusses the possibility of the euro area facing a secular stagnation condition – a long-term stagnation of economic growth and a decline of the natural rate of interest. Discussions of the secular stagnation have arisen after the financial crisis shook the global economy. I focus on defining the term “secular stagnation” and studying the reasons behind it, and justify my observations with an Overlapping Generations model and its application by Eggertsson, Mehrotra and Robbins (2019). I show how all the main forces behind a secular stagnation hypothesis (a decrease in population growth, a fall in productivity growth and an increase in inequality) have somewhat realised in the euro area during the past 50 years. Therefore, it is justified to conclude that the euro area can be facing a secular stagnation condition and that this condition might a “new normal”. This observation is consistent with many economists’ current arguments. fi
dc.format.extent 30+5
dc.format.mimetype application/pdf en
dc.language.iso fi en
dc.title Secular stagnation and its existence in the euro area post-financial crisis fi
dc.type G1 Kandidaatintyö fi Kauppakorkeakoulu fi School of Business en
dc.contributor.department Taloustieteen laitos fi
dc.subject.keyword stagnation fi
dc.subject.keyword secular stagnation fi
dc.subject.keyword economic growth fi
dc.subject.keyword euro area fi
dc.subject.keyword OLG-model fi
dc.subject.keyword interest rates fi
dc.subject.keyword natural rate of interest fi
dc.subject.keyword monetary policy fi
dc.identifier.urn URN:NBN:fi:aalto-202002092063
dc.type.ontasot Bachelor's thesis en
dc.type.ontasot Kandidaatintyö fi
dc.programme Taloustiede en

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