Interest Rates: Economy and Doldrums Something

interest rates: Many believed the economy recovered only because of government spending on the second world war and many feared that with the end of the war, the economy would return to its doldrums, according to The Guardian. Something, it was believed, had happened, such that even with low or zero interest rates, the economy would languish. Economies had always recovered from downturns, but the Great Depression had lasted an unprecedented length of time. For reasons now well understood, these dire predictions fortunately turned out to be wrong. So, as the economy languished, the idea was revived. US will lack fiscal space to respond when next recession comes Read more Those responsible for managing the 2008 recovery - the same individuals bearing culpability for the under-regulation of the economy in its pre-crisis days, to whom President Barack Obama inexplicably turned to fix what they had helped break - found the idea of secular stagnation attractive, because it explained their failures to achieve a quick, robust recovery. (news.financializer.com). As reported in the news.