On his blog, Paul KrugmanÂ suggestsÂ that I have had some kind of change of heart on secular stagnation and converged towards his point of view, citing theÂ publicationÂ of the transcript of a 2011 debate which we both participated in. I certainly appreciate the gravity of the secular stagnation issue more than I did a few years ago, given the continuing decline in global real interest rates. But I think Paul exaggerates the change in my views considerably.
The topic of the debate was: âNorth America faces a Japan-style era of high unemployment and low growth.” Paul argued in favor. I opposed the motion â not on the grounds that the U.S. economy was in good shape, but on the grounds that our demand deficiency problems should be easier to solve than Japanâs.