Secular Stagnation Predicted to Persist in Industrialized Economies, Slowing Recoveries
The industrialized world's economy is likely to experience slow growth for the foreseeable future. Real interest rates have dropped significantly in the past few decades, affecting inflation and economic recovery. Factors like government debt and pension programs have contributed to this decline. Overall, the private sector's neutral real interest rate may have decreased by up to 700 basis points since the 1970s.