Chapter Two: Growth and stagnation in mature and dual economies
Peter Skott
1
,
2
1
University of Massacusetts Amherst, Amherst, MA, United States
2
Aalborg University, Aalborg, Denmark
Abstract
Mature economies can suffer from structural aggregate problems (secular stagnation): full-employment growth may be impossible in the absence of sustained fiscal stimulus. The key problems in dual economies with high levels of open or hidden unemployment, by contrast, concern the composition of demand and the need to expand the modern sector. Dual economies face structural transformation problems, and excessive aggregate demand stimulus can lead to economic stagnation.
Keywords
Fiscal policy; Functional finance; Public debt; Secular ...
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