Paul Krugman

@paulkrugman ↗

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Last Checked June 5, 2021

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Fri May 14 14:43:27 +0000 2021

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Paul Krugman @paulkrugman

Is it macroeconomics — the "neutral" rate needed to maintain full employment without overheating? Or is it supply and demand in the bond market? The answer is ... yes 3/ — PolitiTweet.org

Posted May 14, 2021

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Paul Krugman @paulkrugman

Many people are arguing that rates will go up bc the Fed needs to head off inflationary overheating. This piece argues that demand from investors getting very low yields elsewhere will keep rates down. So what determines rates? 2/ — PolitiTweet.org

Posted May 14, 2021

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Paul Krugman @paulkrugman

Interest rates must be consistent with a sustainable macro environment. But they must also match supply and demand for bonds. These sound like contradictory concerns, but they're really just different aspects of the same thing 4/ — PolitiTweet.org

Posted May 14, 2021