DP10974 Economic impossibilities for our grandchildren?

Author(s): Kevin Hjortshøj O'Rourke
Publication Date: December 2015
Keyword(s): Alvin Hansen, economic history, history of economic thought, Keynes, secular stagnation
JEL(s):
Programme Areas: Economic History
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=10974

The paper looks at the development of the secular stagnation thesis, in the context of the economic history of the time. It explores some 19th century antecedents of the thesis, before turning to its interwar development. Not only Alvin Hansen, but Keynes and Hicks were involved in the conversations that led to Hansen's eventual statement of the thesis that we are familiar with. The argument made sense in the context of the interwar period, but more so in Britain than the US.