The most recent change in structure is the K-shaped economy, an intellectual child of the pandemic. As time has passed, Atwater and many other influential economists have moved from talking about a K-shaped recovery to a K-shaped economy, an ongoing economic bifurcation. The danger of a K-shaped economy is that a K-shaped recovery has two separate paths with self-reinforcing cycles. Core Drivers Of A K-Shaped Economy To understand this K-shaped economy, you have to know about the forces that have enabled and furthered it. “The K-shaped economy is likely to become even more pronounced if asset prices continue rising, benefiting wealthier households,” says Hegener.