Summary of Stagnation Risk

Finance & Development ,

Get the Article

Stagnation Risk summary
The euro zone’s myriad problems signal a protracted period of weak economic growth.

Rating

8 Overall

8 Importance

7 Innovation

8 Style

Recommendation

In this concise article on the myriad problems facing the euro zone, economist Huidan Lin argues that monetary policy has lost its stimulatory punch. Low investment, deep indebtedness and elevated unemployment contribute to prolonging the economic malaise, leaving the region vulnerable to shocks, including the risk of political crisis in the European Union. Lin argues that public policies to jump-start the area’s economies need to focus on debt reduction and structural changes to enhance productivity. getAbstract recommends this relevant and accessible article to policy makers and executives concerned about European economic inertia.

In this summary, you will learn

  • What makes the euro zone vulnerable to continued slow growth
  • What economic policies could reinvigorate the region’s economic progress
 

Summary

In general, the developed economies are experiencing feeble economic growth – so much so that the International Monetary Fund is forecasting below-capacity output through 2020. The euro zone is especially fragile. Economic development there has not kept pace with population growth, resulting in output...
Get the key points from this article in less than 10 minutes. Learn more about our products or log in

About the Author

Huidan Lin is an economist at the International Monetary Fund.


Comment on this summary

More on this topic

By the same author

Customers who read this summary also read

More by category