Why Are Bond Rates Rising?

Long-term interest rates have been rising, and on his New York Times blog Paul Krugman offers his take on why. Krugman says an increase in long-term rates usually results from one of three scenarios: “One is that the bond vigilantes have arrived, and are selling US debt because they now believe in the horror stories. Another is that the Fed has changed, that it may be ready to snatch away the punch bowl sooner than… Read More

Krugman: Austerity — Not More Debt — Is The Danger

Nobel Prize-winning Economist Paul Krugman is continuing to say that the U.S. needs to spend more — not undertake austerity measures — to get out of its economic malaise. Krugman tells CBS This Morning that European countries now undertaking austerity measures are showing how austerity in such situations makes the economy worse without even making much progress on decreasing deficits, because austerity causes growth and revenue to shrink. “Austerity later,” he says. “Austerity when the… Read More

Krugman: Don’t Let Up On Unemployment

Economist and Nobel Laureate Paul Krugman says the recent jobs data is encouraging — but that it is not cause to stop major efforts to spur job growth. “For once falling unemployment was the real thing, reflecting growing availability of jobs rather than workers dropping out of the labor force, and hence out of the unemployment measure,” Krugman writes in his New York Times column. “Furthermore, it’s not hard to see how this recovery could… Read More

Krugman on Why Politicians Don’t Get Debt

For much of 2011, politicians have been squabbling over how to pare the U.S.’s deficit. But Paul Krugman says they’re misguided in doing so. “This misplaced focus said a lot about our political culture, in particular about how disconnected Congress is from the suffering of ordinary Americans,” the Nobel laureate economist writes in his New York Times column. “But it also revealed something else: when people in D.C. talk about deficits and debt, by and… Read More

Krugman: We Need a Short-Term Fix

While many say the U.S. should be focusing on long-term solutions to its debt problems, Nobel Prize-winning Economist Paul Krugman says that a more pressing need is a short-term fix for its economic engine. “When you’re bleeding profusely from an open wound, you want a doctor who binds that wound up, not a doctor who lectures you on the importance of maintaining a healthy lifestyle as you get older,” Krugman writes in a recent New… Read More

Krugman: Debt Deal a Dog

Nobel Prize-winning economist Paul Krugman says the debt ceiling deal is a bad one, and that more stimulus — not cutbacks — is needed from the government. Krugman tells Bloomberg that “the economy is losing ground”, and thinks we’ll “bump along the bottom” but likely not go into another recession. Regardless of whether we see another recession by technical terms, he sees weak growth ahead, and says policymakers seem intent on repeating the mistakes of… Read More

Krugman Sees Early Stages of Depression

Nobel-Prize-winning economist Paul Krugman has said in recent months that if more stimulus is not injected into the economy, the economic recovery very well may be derailed. Now, he sees more than a “derailing”. “We are now, I fear, in the early stages of a third depression,” Krugman writes in his latest New York Times column, adding that the depression will likely be more like Long Depression that began in the 1870s than the Great… Read More

Krugman on the Double-Dip Recession

Paul Krugman, the Nobel Prize-winning economist, says that there is a 30% to 40% chance that the U.S. economy will slip back into recession in the latter half of 2010. “It is not a low probability event, 30 to 40 percent chance,” Krugman told BusinessWeek. “The chance that we will have growth slowing enough that unemployment ticks up again I would say is better than even,” he added. Krugman said the winding down of the… Read More

Whitney, Krugman: Government Needs to Do More

While the economy has been showing signs of life in recent months and the stock market is now more than 50% off its March low, two top economic minds are saying that we’re far from out of the woods. In an Op-Ed piece for The Wall Street Journal today, Meredith Whitney — the banking analyst who warned about the credit crisis — offers a new warning: “Anyone counting on a meaningful economic recovery will be… Read More

Krugman on the Stimulus, Inflation, Stocks, and Healthcare

In a wide-ranging interview with Advisor Perspectives, Nobel Laureate, Princeton Professor, and New York Times columnist Paul Krugman says not to quit on the government’s current stimulus package, that he’s not too afraid of inflation, and that stocks don’t appear to be significantly over- or undervalued right now. Regarding the stimulus, Krugman says, “It’s important to remember that the stimulus package has barely kicked in, a point that is lost in the 24/7 reporting on… Read More