But recovering from a shock like the global financial crisis can be a long drawn-out process – just as it was in the 1930s – as consumers and businesses repair their balance sheets and rebuild their confidence in the future. Ultimately, I see this as a cyclical issue, not a secular one, although the cycle is proving to be longer than usual.
More to the point, I take issue with the word “stagnation.” The world’s policy-makers put in place measures to mitigate the damage of the crisis and prevent the worst. We have strengthened our financial architecture to protect against future crises, and the system is still adjusting. Growth has been slow, but it hasn’t been non-existent.