A talk with Fabio Sdogati
Towards a Secular Stagnation?”
Tuesday 10 April 2014, 7.00 pm
c/o Elis – via Sandro Sandri 45 ROMA – Aula Magna
Fabio Sdogati is Professor of International Economics at Politecnico di Milano and Director of Executive Education, Mip School of Management Politecnico di Milano.
This crisis began in 2007 as a credit crunch on the interbank loan market. During 2008, its effects had been perceived already both by companies and, generally speaking, by real economy and they had not been good at all. Governments had understood this scenario: in 2008 the G20 approved expansionary fiscal policies recommended by China and, in February 2009, these policies were adopted also by the US government.
But in 2009 a turnaround took place. In Europe, the austerity dogma began spreading around the continent and ended up being translated into recessionary fiscal policies aimed at controlling government primary deficits and reducing government debt.
Due to these policies, most European countries are facing today the risk of ‘secular stagnation’, which can affect both other high per capita income countries and emerging market economies as well. Once we will have clearly understood that stagnation is not an Act of God but the choice made by European policymakers, we will talk about growth prospects for the global economy.