As we progress through the eighth year of the current economic expansion, economic growth has continued at a robust pace with unemployment reaching a 28-year low, while inflation has remained remarkably subdued. To be sure, not all recent developments have been altogether positive, especially considering the current situation in Asia.
Nonetheless, the performance of the American economy in recent years has exceeded expectations in a rather extraordinary fashion. But recent developments have challenged our understanding of the workings of the macroeconomy.