Why state, citizen and business may be facing a new normal


By Manuel Slupina and Reiner Klingholz

In all industrial nations growth has drastically declined over the last decades. This is the result of structural changes in developed societies. Firstly, population growth is coming to a halt; secondly, innovation potential and productivity are only increasing slowly, despite globalisation and digitalisation; thirdly, inequality is mounting and limits the consumption potential of lower income groups; and fourthly, environmental damage is exerting a decelerating effect on economic development. Classic cyclical economic policy is ineffective in the case of a structurally-caused reduction in growth. So far, growth has been vital for state, business and society. If economic growth slowly wanes in the context of secular stagnation, developed countries will need to carry out fundamental macroeconomic transformations.


Selected Figures


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For interview requests you may contact:
Manuel Slupina, slupina(at)berlin-institut.org, Tel. +49 30-31 10 26 98
Reiner Klingholz, klingholz(at)berlin-institut.org, Tel. +49-30 31 01 75 60


The Berlin Institute would like to thank the Daimler und Benz Stiftung for supporting this research project.

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