Secular Stagnation, Low Interest Rates and Low Inflation: Causes and Implications for Policy

Slow growth, low interest rates and low inflation relative to emerging markets characterize the macroeconomic environment in the Euro Area and other advanced economies. This economic landscape raises the fear that, absent policy intervention, advanced economies will face continued stagnation. Going forward, policymakers need to assess the underlying sources, and formulate macroeconomic policy appropriately.

This conference will contribute to this debate and shed light on key policy questions: Which factors explain low growth and low rates? Why has inflation remained below the ECB’s target, despite accommodative monetary policy? To what extent do catch-up growth and high savings rates in emerging markets contribute to the observed dynamics?