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Goldman: So Far, Larry Summers Has Been Wrong About The US Economy
About a year ago, former Treasury secretary Larry Summers gave his famous speech at the IMF about "secular stagnation." The basic idea behind secular stagnation is that the economy in its current condition is unable to create enough demand to sustain its growth trend, requiring negative interest rates for the Fed to hit its employment and inflation goals. In a note to clients over the weekend, Goldman Sachs economist Jari Stehn revisits Summers' hypothesis, and writes that while it's still early, there are signs pointing towards a US economy that may not, in fact, be stuck in secular stagnation. Read more: ... (full story)