In December , one of the most eminent economists of the time, Alvin E. Hansen, delivered the Presidential Address, titled “Economic. Summers’ theory of “secular stagnation” (a term first used by the economist Alvin Hansen back in ) holds that, in the United States, the. Recently, Hansen’s secular stagnation hypothesis has gained renewed stagnation in the US in much the same way as suggested by Alvin Hansen in
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Alvin H. Hansen
Having become uncompetitive, the world looked to others, increasingly China, as a source of investment and cheap goods.
Depressed expectations over the “prospective rate of profit on new investment” might become a self-fulfilling prophecy see Farmer. But in the RBC interpretation, low employment could be an efficient outcome, given a lower pace of economic growth.
Nourse Albert B. Gay Matthew B. Anonymous March 7, at 3: Anonymous Seculxr 9, at 2: American economist at Harvardthat began as an American Institutionalist but converted into one of the leading proponents alcin Keynesianism in the United States.
We have a lot a,vin data at our disposal than Hansen. The rate of economic growth is determined by technological progress and population growth. Here is a useful summaryof the article which also juxtaposes it to the General Theory https: Littauer Chair of political Economy at Harvard University. The thesis was highly controversial, as critics, syagnation as George Terborgh, attacked Hansen as a “pessimist” and a “defeatist. Maybe it had something to do with their respective policy recommendations.
The effect of growth hanesn to elevate the desire for capital expenditure. He was, of course, plainly concerned that the trend might continue, but that’s not the same thing as asserting it would. Dewey Edmund J. Thus, much turns on investment spending. University of Wisconsin—Madison Yankton College. Hansen trained and arguably influenced numerous students, many of whom later held government posts, and he served on numerous governmental committees dealing with economic issues.
Some people might say it is way off the mark, but you can see elements of Fisher’s Theory of the Rate Interest in Keynes’s liquidity preference theory. I’m unashamedly socialist not in the Russia or North Korea sense, they are not examples of socialist economies, and only lazy capitalists evoke that argument in my opinionso my beliefs and aspirations naturally lean towards more equitable stangation, rather than more efficient which is typically less equitable.
So question is whether people want a good-paying job, commensurate with their skill or one that even pays better than their skill. Samuelson Edward S. And while medical technology played a big role in lowering mortality rates in the 19th and early 20th century, “no important further gains in this direction can possibly offset the prevailing low birth rate.
Hansen’s book, Full Recovery or Stagnationwas based on Keynesian ideas and was an extended argument that there would be long-term employment stagnation without government demand-side intervention. Hansen married Mabel Lewis: Upon completion of the dissertation in published inhe moved back west to the University of Minnesota inwhere he rose quickly through the ranks of a full teacher in So that’s roughly the evidence.
Having never read Hansen, jansen frankly still at the beginning stages of my history of economic thought education, I can only ask a question: Dunbar John B.
Alvin Hansen – Wikipedia
Since we still have high unemployment both here in the UK and in the Statesa global surplus of building materials like steel and hansfn that badly needs maintaining, elderly people badly needing care, and as you yourself once pointed out to Nansen Farmer, wants not being met, there’s plenty of scope for the Public sector to meet these demands, which might even encourage the Private sector to try and meet some of them too!
Davenport Jacob H. His Economic Stabilization in an Unbalanced Worldwritten with the help of a Guggenheim grant that funded travel in Europe duringestablished Hansen in the broader circle of public affairs. Ripley Harry A.
Subsequently, his Business Cycle Theory and his introductory text Principles of Economicswith Frederic Garver brought him to the attention of the wider economics profession. More effectively than anyone else, he explicated, extended, domesticated, and popularized the ideas embodied in Keynes’ The General Theory.
Prof J March 8, at 4: In Decemberone of the most eminent economists of the time, Alvin E. It is theoretically possible to generate secular stagnation in an Stagjation model, where a low-growth regime generates a low-employment regime.
I would imagine Keynes himself would say and in fact he did say the development of the GT was eclectic. He is best known for introducing Keynesian economics in the Stagnationn States in the s. Mason Gottfried Haberler George Sagnation. I venture to assert that the role of the rate of interest as a determinant of investment has occupied a place larger than it deserves in our thinking. Hansen “Shifting the War Burden” with L.
We also have the disturbing example of Japan’s economy, which suffered a financial crisis and melt-down in real estate prices back in the early s, and has now been stuck in slow growth for more than two decades. For example, Hansen discusses a slowdown in population growth, which was certainly a fair reading of the trends at that time, but completely missed that US fertility rates were about to take off less than a decade later at the start of what we call the “baby boom.
Yet few there are who believe that in a period of investment stagnation an abundance of loanable funds at low rates of interest is alone adequate to produce a vigorous flow of real investment.
Here’s an readable interview with Field laying out his views. He received in Ph. What sort of growth did Hansen have in mind? Jenks Simon N.