Advanced economies have been suffering from weak underlying demand, partly due to a mix of demographic and technological changes. Looking ahead, there is some scope for a rebound in private investment and governments may try to boost demand by loosening fiscal policy. But we suspect that the underlying forces weighing on demand will be stronger. If so, policy-makers and investors will have to contend with low inflation and low interest rates for a long time yet.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services