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Secular stagnation and decline: a simplified model

Author

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  • Krouglov, Alexei

Abstract

Presented is a mathematical model of single-product economy describing a nominal economic growth and a nominal economic decline. Based on the model of economic dynamics, policies handling the gravity of the secular stagnation are furnished. First, transition of the secular stagnation into the secular decline is to be prevented. Second, a two-stage economic policy against the secular stagnation should be entertained. The first stage is to promote a policy of advancing the additional demand for products to counterbalance the additional supply of products by external suppliers. The second stage is to sustain a policy of savings and investments to stipulate an economic growth where the savings and investments are to be committed with a modest acceleration. Two stages of the alleviating economic policy can be executed concurrently.

Suggested Citation

  • Krouglov, Alexei, 2014. "Secular stagnation and decline: a simplified model," MPRA Paper 60750, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:60750
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    File URL: https://mpra.ub.uni-muenchen.de/60750/1/MPRA_paper_60750.pdf
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    References listed on IDEAS

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    1. Krouglov, Alexei, 2006. "Mathematical Dynamics of Economic Growth as Effect of Internal Savings," MPRA Paper 1262, University Library of Munich, Germany.
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    Cited by:

    1. Krouglov, Alexei, 2015. "Credit expansion and contraction: a simplified model," MPRA Paper 64227, University Library of Munich, Germany.
    2. Krouglov, Alexei, 2015. "Economic growth and debt: a simplified model," MPRA Paper 65178, University Library of Munich, Germany.
    3. Krouglov, Alexei, 2016. "Mathematical model of the economic trend," MPRA Paper 74919, University Library of Munich, Germany.
    4. Krouglov, Alexei, 2015. "Mathematical model of the Greek crisis," MPRA Paper 66115, University Library of Munich, Germany.

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    1. Krouglov, Alexei, 2015. "Mathematical model of the Greek crisis," MPRA Paper 66115, University Library of Munich, Germany.
    2. Krouglov, Alexei, 2015. "Credit expansion and contraction: a simplified model," MPRA Paper 64227, University Library of Munich, Germany.
    3. Krouglov, Alexei, 2014. "Monetary part of Abenomics: a simplified model," MPRA Paper 53397, University Library of Munich, Germany.
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    5. Krouglov, Alexei, 2015. "Economic growth and debt: a simplified model," MPRA Paper 65178, University Library of Munich, Germany.
    6. Alexei KROUGLOV, 2013. "Simplified Mathematical Model Of Financial Crisis," Journal of Advanced Studies in Finance, ASERS Publishing, vol. 4(2), pages 109-114.

    More about this item

    Keywords

    economic growth; business fluctuations; secular stagnation;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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