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Long-term real rates remained low, however.
Cash generates very low long-term real returns, of around 1% a year.
"The long-term, real world, scientific reality is that a ban wouldn't save a single hive.
If European dividends merely keep pace with inflation, the long-term real return on equities will be 4%.
But if the long-term real interest rate is 1%, the government should borrow the money and build it.
Regarding developed countries, he said that "the case for infrastructure investment seems compelling at a time of very low long-term real interest rates".
Because saving is presumed to be the key determinant of long-term real economic growth, deficits deplete the supply of saving and thus reduce growth.
"Their long-term real estate strategy has been to slowly and carefully plan and build out their home there," the statement noted.
"Even when the current downturn comes to an end, it is difficult to envisage long-term real growth in television advertising revenues.
Mr Summers seems to be arguing that more demand would simply mean more investment, and because we lack sufficient good (private) investment opportunities already (which is why long-term real rates are low) adequate demand just means more foolish investment.
The only asset class they could find with a positive correlation was gold but the long-term real return of gold has been just 1% a year, barely better than cash.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com