Since 2013, Lawrence Summers, the former US Treasury Secretary has been using the notion of 'secular stagnation' to describe the current global economic situation.

This coincides with a theory proposed by Chan Kung, the chief researcher at ANBOUND Consulting in 2008, in which Chan Kung predicted that ‘the global economy will be in long-term stagnation in ten years’ time’.

To sum up, the long-term economic stagnation has three obvious traits: -

(i)surplus of saving relative to investment;

(ii)ultra-low interest rate; and

(iii)lack of demand over a long period of time.

This means that following the global financial crisis, the long-term economic stagnation is gradually coming true.

The national policy makers, businesses and consumers should make every preparation for the long-term economic stagnation.