Since the onset of the global financial crisis, developed economies have been suffering low growth and inflation rates. As a result of this long-lasting stagnation, room for further expansionary policy through traditional channels has shrunk.
In this project, we first search for effective monetary and fiscal policies even as the usefulness of traditional stabilization policies has its limits. Then, we aim to understand the implications of such structural changes as societal aging and globalization on policy impacts, which are considered as part of the background as well as the consequence of the stagnant economic developments.
