Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/103958 
Authors: 
Year of Publication: 
2014
Series/Report no.: 
Economics Discussion Papers No. 2014-47
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
This study analyzes the emergence of secular stagnation as the consequence of a rise in the preference for liquidity. Such a rise is caused by a persistent set of pessimistic expectations. This study also investigates the effectiveness of a broad range of demand-management policies in dealing with secular stagnation. To obtain these results, this study uses a model where agents derive utility from holding assets of different degrees of liquidity. In this environment, rational expectations interact with changes in market sentiment, to produce secular stagnation.
Subjects: 
helicopter money
liquidity preference
market sentiment
quantitative easing
pessimistic (optimistic) expectations
utility analysis
JEL: 
E2
E3
E4
E5
E61
E62
E63
G11
G12
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

Files in This Item:
File
Size
665.54 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.