Paul Krugman

@paulkrugman ↗

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Last Checked May 15, 2022

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Thu Mar 17 18:06:53 +0000 2022

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Paul Krugman @paulkrugman

Why do we talk about real, not nominal, interest rates as determinants of investment? Let me start with an Austrian-style example — deliberately silly and unrealistic, plus I'm going to ignore compound interest for simplicity. Bear with me 8/ — PolitiTweet.org

Posted March 17, 2022

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Paul Krugman @paulkrugman

I tried to write about the demand side yesterday, but I suspect nobody understood my point. So here's another try 7/ https://t.co/DH4XgwS0o0 — PolitiTweet.org

Jason is right to talk about real interest rates, but I think we need to be especially cautious in interpreting the… https://t.co/clJR1QneVW

Posted March 17, 2022

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Paul Krugman @paulkrugman

Suppose you have point-input point-output investment — say, you can plant a tree and sell it 10 years later. Suppose planting costs $100, and in a world of stable prices you'd expect to sell it a decade from now for $110. Then the investment is worth it if you can borrow @<1% 9/ — PolitiTweet.org

Posted March 17, 2022