Secular stagnation or financial cycle drag?

Keynote speech by Mr Claudio Borio, Head of the Monetary and Economic Department of the BIS, at the National Association for Business Economics, 33rd Economic Policy Conference, Washington DC, 5-7 March 2017.

This speech compares and contrasts two different interpretations of the current plight of the global economy. It argues that the world has been suffering not so much from secular stagnation as from the aftermath of financial booms gone wrong - financial cycle drag. It then draws the implications of the analysis for the risks ahead and for policy.