Business Economics

, Volume 49, Issue 2, pp 65–73 | Cite as

U.S. Economic Prospects: Secular Stagnation, Hysteresis, and the Zero Lower Bound

  • Lawrence H Summers
Original Article


The nature of macroeconomics has changed dramatically in the last seven years. Now, instead of being concerned with minor adjustments to stabilize about a given trend, concern is focused on avoiding secular stagnation. Much of this concern arises from the long-run effects of short-run developments and the inability of monetary policy to accomplish much more when interest rates have already reached their lower bound. This address analyzes contemporary macroeconomic problems and proposes solutions to put the U.S. economy back on a path toward healthy growth.


U.S. economy stagnation interest rates monetary policy fiscal policy economic growth 


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© National Association for Business Economics 2014

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  • Lawrence H Summers

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