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Institute of Social and Economic Research Discussion Papers.946 P.1-P.26

Growth, Secular Stagnation and Wealth Preference

Ono, Yoshiyasu

The Institute of Social and Economic Research, Osaka University

英語

2015-08

http://hdl.handle.net/11094/52452

In 1960s-1980s Japan enjoyed high economic growth. In the early 1990s, however, the growth rate drastically declined and thereafter Japan has been suffering secular stagnation. This paper proposes a dynamic macroeconomic model that can consistently explain such a drastic change in economic performance. Wealth preference plays an important role. In the early stage consumption grows at the same pace as productivity increases. Once consumption reaches a certain level, however, it deviates from the full-employment level and aggregate demand deficiency appears. After that the economic growth rate asymptotically approaches zero even if productivity keeps on increasing, and secular stagnation arises.

Growth, Secular Stagnation and Wealth Preference

Ono, Yoshiyasu

The Institute of Social and Economic Research, Osaka University

英語

2015-08

Institute of Social and Economic Research Discussion Papers

946

1

26

http://hdl.handle.net/11094/52452