New models trying to sort through economic reality
The models are broken.
The reality is that economists, and their theories have been wrong. Most prognosticators simply double-down on the theories that got them a seat in the ivory tower, but increasingly, there are some who are challenging the orthodoxy.
Tomas Pikkety is the poster-child but there are others and, today, Greg Ip looks at Robert Gordon and his book "The Rise and Fall of American Growth."
The winds of change are swirling in economics and politics. The winners in markets will be the ones who can figure out which direction they will eventually blow.