For the last two weeks, people have been talking about a speech Larry Summers
gave to the IMFabout secular stagnation, bubbles, and negative interest rates.
If you haven’t read it yet, have no fear, Citigroup FX analyst Steven Englander has published a note on the speech wherein he summarizes it into two sentences:
The ability of the economy to generate adequate demand is so impaired that we are getting financial bubbles before we get full employment. In consequence, under current policies episodes of full employment are fleeting and unsustainable.
That’s pretty disturbing and you can see why everyone’s so interested.
Read more on the speech here.