In December , one of the most eminent economists of the time, Alvin E. Hansen, delivered the Presidential Address, titled “Economic. Summers’ theory of “secular stagnation” (a term first used by the economist Alvin Hansen back in ) holds that, in the United States, the. Recently, Hansen’s secular stagnation hypothesis has gained renewed stagnation in the US in much the same way as suggested by Alvin Hansen in

Author: Mek Meztibar
Country: Tajikistan
Language: English (Spanish)
Genre: Politics
Published (Last): 1 April 2005
Pages: 55
PDF File Size: 10.84 Mb
ePub File Size: 13.13 Mb
ISBN: 128-9-32247-655-3
Downloads: 19774
Price: Free* [*Free Regsitration Required]
Uploader: Zusho

Arthur Lewis Charles L. But more recently, Hansen writes, “the role of economic progress in the maintenance of full employment of the productive resources has come under consideration.

He was elected as a Fellow of the American Statistical Association in Hansen was appointment as special economic secularr to Marriner Eccles at the Federal Reserve Board in and he was in charge until In this post, I’ll sketch out what Hansen actually said, give a sense of why the “secular stagnation” hypothesis was widely disregarded in recent decades, and suggest how I see the modern lessons. The s and s were a time when new technologies were bringing new products to market.

Upon completion of the coursework for the PhD in More effectively than anyone else, he explicated, extended, domesticated, and popularized the ideas embodied in Keynes’ The General Theory.

CONVERSABLE ECONOMIST: Secular Stagnation: Back to Alvin Hansen

Ergoa higher rate of growth over long periods of time begets a higher rate of resource utilization over the same period of time higher average employment rate, lower average unemployment rate. This view is moreover in accord with competent business judgment.


It’s just not something that is as obvious as people like to portray. I think I can understand why you cannot agree with paragraph 4 I think – it’s pretty much the policy advocated by MMT, which I have found much to agree with, where the buffer stock represented by NAIRU presently is replaced with a buffer stock secukar by a Seculxr Guarantee, and requires subscription to the concept that the state, as the monopoly issuer of currency, can afford to pay for any goods, services and resources denominated in their issued currency, mindful only of inflationary risks as Full Employment is reached.

Clark Henry C.

Except that it hanxen that we are: Having never read Hansen, and frankly still at the beginning stages of my history of economic thought education, I can only ask a question: Mason Gottfried Haberler George J. Inhe helped create the US Social Security system and, inhe assisted in the drafting of the Full Employment Actwhich, among other things, created the Council of Economic Advisors.

Hansen married Mabel Lewis: But a full-fledged recovery calls for something more than the mere expenditure of depreciation allowances. So maybe the pace of technological advance will accelerate. This is a great folly. He received in Ph. I am curious to know what sort of empirical evidence one might bring to bear on this hypothesis.

I’m not saying it can’t be done.

Alvin Hansen

It is used in mainstream economics literature and textbooks to illustrate how monetary and fiscal policy can influence GDP. Alternatively, Tim Taylor provides a concise and accurate summary here: It would also be an economy where a large share of profits flowing to the financial sector would be troubling, because it suggests that nonfinancial firms are not perceiving profitable opportunities for real investments in plant, equipment and technology.


Alvin Harvey Hansen August 23, — June 6,often referred to as “the American Keynes,” was a professor of economics at Harvarda widely read author on current economic issues, and an influential advisor to the government who helped create the Council of Economic Advisors and the Social Security system.

I’m not entirely sure why this was the case, especially in light of the subsequent popularity of Keynesian theory. I don’t want to make too much of this now, but consider my post herein particular, the passage by Richard Rogerson related to this issue.

Believe those who are seeking the truth. Jenks Simon N. David Andolfatto March 8, at 6: Kemmerer Thomas S. The Dollar and the International Monetary System Klein Jacob Marschak Tjalling C.

Alvin H. Hansen

If this be granted, we are forced to regard the factors which underlie economic alvi as the dominant determinants of investment and employment. This perspective doesn’t rule out using monetary or fiscal policy to stimulate the economy in the short run, but neither does it see these as long-term answers.

He was skeptical that lower interest rates could encourage the large and vigorous investment levels that he felt were needed: Stagnahion industries and technologies stimulate the demand for business fixed investment.