A theoretical analysis of persistent bubbles and secular stagnation

2014 Fiscal Year Final Research Report

• Project/Area Number: 22530178
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Single-year Grants
• Section: 一般
• Research Field: Economic theory
• Research Institution: Osaka University
• Principal Investigator: ONO Yoshiyasu 大阪大学, 社会経済研究所, 教授 (70130763)
• Project Period (FY): 2010-04-01 – 2015-03-31
• Keywords: 長期不況 / 資産選好 / 非自発的失業 / 流動性のわな / 地位選好 / 公正賃金

Outline of Final Research Achievements

Although many countries, including Japan, the USA and the EU, have been suffering long-run stagnation, conventional macroeconomic models have only been able to explain short-run recessions. By applying the concept of the fair wage to a dynamic setting and theoretically analyzing the behavior of households that care about the social status with respect to asset holdings, I have presented a theory of long-run stagnation in which aggregate demand deficiency and deflation continue. It is found that such a long-run stagnation arises especially when potential productivity is high. Differences in the effects of monetary and fiscal policies between short-run recession and long-run stagnation have also been analyzed.

Free Research Field

マクロ経済動学、国際金融、貿易理論