Krugman: Monetary Policy Not Enough, We Need More

The video discusses concerns about low global growth and the limitations of current monetary policy. It highlights the concept of secular stagnation, suggesting a fundamental shortage of demand due to demographic changes and slowing technological progress. The preference for safe assets over real investment is leading to economic risks, including the potential Japanification of both advanced and developing economies. The speaker emphasizes the urgent need for stronger policy interventions to stimulate demand and avoid these risks.

What is one reason the speaker suggests for the fundamental shortage of demand?

• Demographic changes

• Technological advancements

• Increased global trade

• Rising inflation

What does the speaker mean by 'japanification' of economies?

• Increased technological innovation

• Economic stagnation similar to Japan

• High inflation rates

• Rapid economic growth

Why are people piling into government bonds according to the speaker?

• To finance real investment

• Due to a lack of safe assets

• To support technological progress

• To increase global savings

What does the speaker suggest is necessary to avoid economic stagnation?

• Maintaining current policies

• Increasing interest rates

• Implementing more aggressive policy measures

• Reducing government spending

What is the speaker's view on the current state of monetary policy?

• It is causing high inflation

• It is extraordinarily expansionary but insufficient

• It is too restrictive

• It is adequate