The great digital decoupling: an existential challenge for economics and economists

Abstract This study investigates a growing paradox within the economics profession: while intellectual output has expanded significantly, its practical influence on policy and societal well-being appears to be diminishing. We term this phenomenon the “Great Digital Decoupling.” Analyzing data from 2013 to 2023, we observe an approximate 80% increase in academic publications, patents, and economics graduates. However, this surge in knowledge production correlates with stagnating productivity growth, elevated debt-to-GDP ratios, and persistent labor market fragility. Through multivariate regression and citation analysis of IMF and World Bank reports, we identify a negative feedback loop wherein rising research volume is associated with a decline in the policy uptake of academic work. We argue that this decoupling is structural, driven by an epistemological mismatch between traditional equilibrium-based models and the network-driven, data-intensive realities of the digital economy. While existing critiques focus on ideological or curricular inertia, this study provides empirical evidence of a two-stage fracture: first, a post-2008 conventional decoupling, and second, an accelerating digital decoupling exacerbated by artificial intelligence. Finally, we propose the Digital Sustainable Growth Model (DSGM) not merely as a theoretical alternative, but as a foundational step toward integrating complexity science and digital-native metrics into mainstream macroeconomic modeling. We outline how DSGM might be operationalized within standard production functions to restore the discipline’s relevance.