Can the World Escape Japan's Low Rates Trap?

The transcript discusses the global challenge of escaping a low interest rate environment, which is compounded by lower potential growth and structurally lower inflation. It critiques the models used by central banks, suggesting they may not be suitable. The text argues that low interest rates may facilitate or even cause structural economic problems. Japan is highlighted as an extreme example, with a tight labor market but no wage inflation.

What does the author think about the model that central bankers are using for policy analysis?

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According to the text, what has become part of the disease in the context of economic policy?

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