Can an economy remain stable while becoming inefficient?
We often associate economic stability with good fundamentals.
But in some cases, institutions hold, markets remain calm, and crises are avoided for long periods — while productivity slows, capital allocation becomes defensive, and innovation weakens.
There is no visible shock, no obvious correction.
I’m curious how others think about this dynamic, and whether you’ve seen real-world examples where stability itself became a constraint rather than a strength.
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