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Larry Summers recently warned that advanced economies are facing structurally weak growth. The best that policy-makers can do is inflate an endless series of asset price bubbles to stimulate demand, rolling through the various asset markets in turn. The experience of the last two decades supports that view – first the dotcom and associated tech stock bubble; then the housing market bubble, inflated by over-exuberant banks; then the bubble in government bond markets fueled by quantitative easing; and most recently, perhaps, a nascent bubble in equity prices.
But is this just another bubble, doomed to burst, or the start of a run of sustainable growth? Is the US in the same boat as other developed economies? Find out at our January 17th webinar.
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