Secular Stagnation, Low Interest Rates and Low Inflation: Causes and Implications for Policy

Slow growth, low interest rates and low inflation have characterized the macroeconomic environment in the Euro Area and other advanced economies since the global financial crisis of 2008-09. In this economic landscape there are growing concerns that advanced economies will face continued stagnation. This has not abated in the wake of the COVID-19 pandemic as the underlying trends and driving factors are still in force. This special issue of the Journal of Economic Dynamics and Control consists of 8 papers that offer novel empirical and theoretical perspectives on slow growth, low interest rates and inflation rates, and discuss resulting challenges for macroeconomic policy. All papers were presented at a virtual conference organized by the Journal of Economic Dynamics and Control, the European Commission and the Centre for Economic Policy Research (CEPR) on 5-6 November 2020.