Boom Bust Season 2 Episode 147 Bernanke and Summers Don't Understand Secular Stagnation

In season 2 episode 147 of Boom Bust, entitled "Bernanke and Summers Don't Understand Secular Stagnation," the hosts discuss the concept of "secular stagnation" and its implications for the global economy. They argue that former Federal Reserve chairs Ben Bernanke and Larry Summers are not fully grasping the severity of the problem, which could have dire consequences for the world's financial systems.

The episode begins with a discussion of the origins of secular stagnation, a term coined by economist Alvin Hansen in the 1930s to describe a situation where the economy is stuck in a long-term period of sluggish growth and low inflation. The hosts argue that this phenomenon is becoming increasingly relevant today, as many major economies around the world are facing low growth and low interest rates that are persisting even as the global recovery from the Great Recession continues.

The hosts then turn their focus to Bernanke and Summers, two of the most prominent economic policymakers of the past decade. They argue that these figures, while certainly knowledgeable about economics, are not fully understanding the implications of secular stagnation. Bernanke, in particular, has argued in the past that low interest rates and low inflation are temporary phenomena that will eventually right themselves. However, the hosts argue that this view is overly optimistic, and that the problems facing the global economy are more structural in nature.

The hosts go on to discuss some of the potential consequences of secular stagnation. They argue that low growth and low interest rates can lead to a number of problems, including rising inequality, increased debt levels, and instability in financial markets. They also point out that some policymakers have suggested that more government intervention may be necessary to stimulate growth in the face of these challenges.

Throughout the episode, the hosts speak with a number of experts in the field, including economists and financial analysts. They discuss some of the potential solutions to the problem of secular stagnation, including more aggressive government spending and investment, as well as structural reforms to stimulate innovation and productivity.

Overall, "Bernanke and Summers Don't Understand Secular Stagnation" is an informative and thought-provoking episode of Boom Bust that offers a deep dive into one of the most pressing economic issues of our time. By examining the views of two prominent economic figures and analyzing the potential consequences of secular stagnation, the hosts provide a nuanced and insightful look at the challenges facing the global economy today.