Abstract
Mature economies can suffer from structural aggregate problems (secular stagnation): full-employment growth may be impossible in the absence of sustained fiscal stimulus. The key problems in dual economies with high levels of open or hidden unemployment, by contrast, concern the composition of demand and the need to expand the modern sector. Dual economies face structural transformation problems, and excessive aggregate demand stimulus can lead to economic stagnation.
| Original language | English |
|---|---|
| Title of host publication | Handbook of Economic Stagnation |
| Editors | L. Randall Wray, Flavia Dantas |
| Number of pages | 16 |
| Publisher | Academic Press |
| Publication date | 1 Jan 2022 |
| Pages | 21-36 |
| Chapter | 2 |
| ISBN (Print) | 978-0-12-816270-5 |
| ISBN (Electronic) | 978-0-12-815898-2 |
| DOIs | |
| Publication status | Published - 1 Jan 2022 |
Bibliographical note
Publisher Copyright:© 2022 Elsevier Inc. All rights reserved.
Keywords
- Fiscal policy
- Functional finance
- Public debt
- Secular stagnation
- Structural transformation