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2019-04-11

What to do if stagnation threatens when interest rates are already close to zero?

We are back to facing the same question as in 2016: What to do if stagnation threatens when interest rates are already close to zero?

The depth of the subsequent recession, and the long period of slow growth that followed, was the result not of continued financial system fragility, but of the excessive leverage in the real economy that had developed over the previous half-century. 


Faced with slow growth, political discontent, and large inherited debt burdens, monetary finance cannot be a taboo option.

Adair Turner Project Syndicate 29 March 2019


See also https://www.project-syndicate.org/commentary/defending-helicopter-money-stimulus-by-adair-turner-2016-08

 Adair Turner, a former chairman of the United Kingdom's Financial Services Authority and former member of the UK's Financial Policy Committee, is

Chairman of the Institute for New Economic Thinking. 

His latest book is Between Debt and the Devil.

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