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Secular Stagnation or Self-Inflicted Malaise?

Almost exactly eight years ago, the Lehman Brothers collapse plunged the entire industrialized world into the worst crisis since the end of World War II. The crisis still has not been fully overcome, because monetary policy preempted the creative destruction that could have formed the basis for a new upswing in growth.

MUNICH – Almost exactly eight years ago, the Lehman Brothers collapse plunged the global economy into recession. The interbank market collapsed, and the entire industrialized world was thrown into the worst crisis since the end of World War II. Though central banks have maintained ultra-low interest rates, the crisis hasn’t yet been fully overcome. On the contrary, numerous economies, such as the southern European countries and France, simply aren’t making any headway. And Japan has been on the ropes for a quarter-century.

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