Secular Stagnation for Free
For some reason, achieving a level of investment that would generate full employment seems to require negative real interest rates, which is another way of saying that people have to be paid to invest. In fact, to harness the possibilities of new technology, we may need non-market forms of payment for valuable contributions.
CAMBRIDGE – Something is definitely rotten in the state of capitalism. Despite unprecedentedly low interest rates, investment in most advanced countries is significantly below where it was in the years prior to the 2008 crisis, while employment rates remain stubbornly low. And even investment in the pre-crisis period was unimpressive, given low prevailing interest rates.