The risks of the next great depression and key factors of long-term stagnation

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Date
2019
Journal Title
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Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
The article analyzes the key factors of long-term stagnation. In the scientific literature, studies of long-term economic stagnation have appeared for the first time since the Great Depression of 1929-1933. The innovation in this regard belongs to American Keynesian trend economist Alvin Hansen. In the 1990s the scientific community has returned to discussing long-term stagnation, observing a significant slowdown in economic growth in Japan. In the past decade, the low rate of post-crisis recovery in developed countries has again sparked an active discussion about the possibility and factors of long-term stagnation and rethinking the growth prospects of the global economy. The main characteristic of prolonged stagnation is a slowdown in economic growth. In the past decade, the low rate of post-crisis recovery in developed countries has again sparked an active discussion about the possibility and factors of long-term stagnation and rethinking the growth prospects of the global economy. If we pay attention to the dynamics of the sovereign and total debt of developed countries over the past ten years, it becomes obvious that there is a solid basis for long-term stagnation in the future of these countries.
Description
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Keywords
Economic stagnation, Depression, Slowing economic growth, Stagnation factors, Potential output, Demographic factors, Excess savings, State debt
Citation
The 4th International Scientific Conference: "Challenges of Globalization in Economics and Business", Tbilisi, 2019, pp. 462-467
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