Economics & Finance / Macroeconomics / Economic Growth & GDP

A Contagious Malaise: How Economic Stagnation Spreads in an Open World

Why do some countries seem stuck in a rut of slow growth, and how does this stagnation spread across borders? This video explores the concept of 'secular stagnation' in an open economy context. We'll break down how weak demand, low interest rates, and global interconnectedness can create a self-reinforcing cycle of economic sluggishness that is difficult to escape. Using clear explanations and visual aids, we'll examine the channels through which stagnation in one major economy can become contagious, affecting trade partners and global financial flows. Understanding this 'contagious malaise' is key to grasping the challenges facing policymakers in today's interdependent world.