Fed chairman Kevin Warsh on Monday said the world had entered into an era of secular growth and was witnessing a global investment surge.
\n\nSpeaking at the opening session of a meeting of finance ministers of leading economies from around the globe in Asheville, North Carolina, Warsh said that the global economy was in a “new period of secular growth.” He said he planned on asking economic policymakers at the meeting whether they believed this was a cyclical trend or a secular change.
\n\nWarsh contrasted the current period with the era that followed the global financial crisis, when many policymakers and academics were convinced that major global economies had fallen into a slow-growth period of “secular stagnation,” a phrase coined by economist Larry Summers, and was suffering from a global savings glut. Secular stagnation, Warsh said, was the sense “that all the good stuff had already been invented, that we would be managing an economy that was going to be short of investment and economic growth.”
\n\nWarsh also said that the “global savings glut” was over. This was the idea that money would stay on the sidelines, pushing interest rates down and unemployment up, as investors perceived a shortage of…
Original source: https://www.breitbart.com/economy/
