Business Cycles, Growth, Misallocation, and AI with Pete Klenow | Hoover Institution

About this episode

Jon Hartley interviews economist Pete Klenow about economic growth, misallocation, and the impact of AI on productivity.

Pete Klenow has spent his career tackling some of economics’ biggest questions: Why do some countries grow rich while others remain poor? What drives long-run prosperity? And how can policy foster innovation and productivity? In this episode of Capitalism and Freedom in the 21st Century, Jon Hartley sits down with the Stanford economist to discuss Klenow’s influential research on sticky prices, development accounting, economic growth, and the allocation of resources across firms and industries. The conversation explores how economists measure the sources of growth, why misallocation can hold back entire economies, and what Klenow’s research reveals about productivity differences across countries such as China, India, and the United States. Hartley and Klenow also examine the evolution of macroeconomics, the role of monetary policy, and the potential impact of artificial intelligence on innovation, productivity, and future economic growth. Recorded on June 2, 2026. ABOUT THE SERIES Each episode of Capitalism and Freedom in the 21st Century, a video podcast series and the official podcast of the Hoover Economic Policy Working Group, focuses on getting into the weeds of economics…

People in this episode

Host: Jon Hartley

Guest: Pete Klenow

Topics covered

• economic growth
• misallocation
• artificial intelligence
• monetary policy
• productivity
• innovation

Keywords

• business cycles
• economic growth
• policy
• innovation
• productivity differences

Mentioned in this episode

Organizations: Hoover Institution

Places: China, India, United States

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