Executive Summary
In a companion paper, “Six Impossible Things Before Breakfast,” we present evidence that asset markets are generally priced for “secular stagnation,” and argue that this requires a number of extreme assumptions on the part of investors. However, we didn’t really explore the root causes and consequences of secular stagnation in that paper. We remedy that with this paper, which is a deep dive into the murky world of secular stagnation, its sources, and its impact.
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