Rising Yields And Sinking Theories - Just Think, by Marco Annunziata
justthink.substack.com
Secular Stagnation theory predicted permanently low rates and sluggish growth — but rising yields are now exposing just how badly that framework misread the world.
Secular StagnationLoanable Funds TheoryKeynesian EconomicsParadigm Shift
Theory Briefing
- Secular Stagnation predicted aging populations would flood markets with savings and suppress yields permanently, but that savings surge never materialized.
- Rising yields are directly contradicting the theory's core premise, forcing economists to reckon with a framework built on shaky empirical ground.
- The collapse of Secular Stagnation as a predictive model raises deeper questions about how flawed theories gain mainstream consensus and resist correction.