Stagnations typically mean long periods of sluggish growth of about 0.5pc, low inflation, rising and sticky unemployment, stagnant house prices, and lower returns on shares, they said. There is a 40pc chance of the current situation developing into a period of stagnation among developed economies, Goldman calculated. "Trends in Europe and the US are so far still following growth paths that would be typical of stagnations," they said in a note. "Given those risks, whether these countries manage to avoid a ‘Great Stagnation’ by a pick-up in the recovery is likely to depend on policy being able to restore confidence and ... (full story)