Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/154265
Authors: 
Jimeno, Juan F.
Year of Publication: 
2015
Series/Report no.: 
ECB Working Paper 1832
Abstract: 
The Great Recession and the subsequent European crisis may have long-lasting effects on aggregate demand, aggregate supply, and, hence, on macroeconomic performance over the medium and long-run. Besides the fact that financial crisis last longer and are succeeded by slower recoveries, and apart from the hysteresis effects that may operate after episodes of long-term unemployment, the combination of high (public and private) debt and low population and productivity growth may create significant constraints for monetary and fiscal policies. In this paper I develop an OLG model, one earlier used by Eggertsson and Mehrotra (2014) to rationalize the "secular stagnation hypothesis", to show how high debt, and low population and productivity growth may condition the macroeconomic performance of some European countries over the medium and long-run.
Subjects: 
inter-generational transfers
natural rate of interest
population and productivity growth
secular stagnation
zero lower bound
JEL: 
E20
E43
E52
E66
ISBN: 
978-92-899-1645-5
Document Type: 
Working Paper

Files in This Item:
File
Size





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