Recent posts

At Davos: Challenges before the ECB

Summers discusses the challenges before the European Central Bank and explains why he sees Europe on its way to being the next Japan. He spoke to Bloomberg TV from the World Economic Forum in Davos, Switzerland on January 21, 2015. continue

Inclusive Prosperity Commission

The Inclusive Prosperity Commission, co-chaired by Lawrence H. Summers, released a new report on January 15, 2015 that offers bold new prescriptions to reinvigorate the middle class and reduce income inequality.  Summer said, “No industrial democracy will succeed unless its middle class enjoys sustained growth in living standards. This depends not only on strong economic growth but also on assuring that its benefits are widely shared.”   continue

Response to Marc Andreessen on Secular Stagnation

Marc Andreessen’s thoughtful “Tweetstorm” on secular stagnation raises a number of important questions.  We are in agreement that the essence of the secular stagnation issue is not whether technology has stopped advancing; but rather whether there is a mismatch between desired saving and investment opportunities that results in low equilibrium real interest rates, precipitates financial instability, and may inhibit economic growth. Here I respond to his specific questions and criticisms regarding the secular stagnation hypothesis: continue