3 But, equilibrium implies a prolonged stable situation, and while that might be emerging in economic terms, the same is not the case in social terms. Put differently, the social equilibrium is not stable. Advanced economies must either radically change their economic prospects by generating growth and jobs, or they will be forced to adjust their social systems in uncharted ways.
In the rest of my remarks, I will first discuss some of the hypotheses put forward in the literature to explain the determinants of this prolonged, low-growth period, sometimes characterised as a global liquidity trap. I will then review some of the proposed measures to exit from the liquidity trap, including fiscal and structural policies.