Paul Krugman

@paulkrugman ↗

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Last Checked May 11, 2022

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Wed Mar 16 18:29:36 +0000 2022

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Paul Krugman @paulkrugman

But even 10-year real rate is very low; does this give a strong incentive to engage in real investment? You need to think about the actual process of real investment. 8/ — PolitiTweet.org

Posted March 16, 2022

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Paul Krugman @paulkrugman

First question is which maturity of rates to look at. The answer there is clearly longish: interest rates mainly matter for long-lived investments, so it's something like the 10-year rate rather than Fed funds that matters for the real economy 7/ — PolitiTweet.org

Posted March 16, 2022

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Paul Krugman @paulkrugman

Imagine developers considering borrowing money to build new structures on spec (structures is mainly where Fed policy has traction). They can't take out a loan and convert it into real estate the same day 9/ — PolitiTweet.org

Posted March 16, 2022