Looking to this chart, one would say that the vital signs of US economy are fading. This is not good, but what’s even worse is that economists have no idea of what’s wrong with the economy. Gregory Mankiw puts forward five possible theories here:
- Statistical mirage (it’s the measurement device what’s not working)
- Hangover from the crisis
- Lawrence H. Summers’s Secular stagnation
- Robert Gordon’s Slower innovation
- Policy missteps
One sickness, five diagnoses. Time to go visit Dr. Gregory House!