[gburt]

The linked paper is empirical counterevidence to that theoretical model though.

Admittedly, we can always just say "we're not in the long run," I'm not sure how useful that is.

I'm not certain what model exactly you're talking about, but I think it also probably misses technological change as a real source of growth independent of any monetary musings.

[kruhft]

Theory is an 'efficient' market model. Practice is not. Reminds me of the old joke:

An Efficient Market Theorist sees a $100 lying on the ground, and passes it by saying "If that existed, someone else would have picked it up by now!".

[FabHK]

> An Efficient Market Theorist

Milton Friedman, in the apocryphal story. And back in my days it was $20 :-)

[AnimalMuppet]

The paper's data set is from 1870 to 2015, which is 145 years. If that's not close enough to "the long run" for the theory to match reality, then the theory is either wrong or useless.