- Macroeconomic dynamics in the U.S. economy has increasingly become associated with asset price fluctuations in the past few decades. Financial conditions have increasingly become an influential factor shaping macro cycles.
- There has been a mismatch between rising financial wealth and the pace of creation and incorporation of new assets. Secular stagnation hypotheses offer explanations for the insufficiency of new assets.
- The U.S. big balance sheet economy has been on a growth path highly dependent on the continuity of low real interest rates, as well as stretched price-earnings ratios of stocks.
For further details see:
U.S. Bubble-Led Macroeconomics