Krugman says he’s ‘fanatically confused’ on where rates are going


Nobel laureate in economics Paul Krugman. — Bloomberg

NEW YORK: Nobel laureate in economics Paul Krugman says it’s entirely unclear where interest rate levels are headed over the medium term, with arguments in favour of both a return to pre-pandemic levels and a higher-for-longer outcome.

“On interest rates I am fanatically confused,” Krugman said on Tuesday on Bloomberg Television’s Wall Street Week with David Westin, with regard to whether borrowing costs will remain above pre-Covid levels.

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