Interest rates probably won’t stay high, thanks to a shrinking workforce and the tech industry’s ‘midlife crisis,’ top economist Paul Krugman says

Nobel-winning economist Paul Krugman
Interest rates probably won’t stay high, top economist Paul Krugman wrote in an op-ed. 
Higher rates are temporary due to lingering effects of COVID-19, and will likely be dragged down by lower investment demand.
“What all this suggests to me is that the era of cheap money is not, in fact, over,” Krugman said.

Interest rates probably won’t stay high, thanks to a shrinking US workforce and a tech industry in the throes of a “midlife crisis,” according to Nobel laureate Paul Krugman.

In an op-ed for the New York Times, the famed economist pointed to the surge in interest rates this year, which has largely been spurred by the Federal Reserve’s fight to bring down inflation. Already, the central bank has raised rates by nearly 400-basis-points, driving up the cost of borrowing, and the yield on 10-year Treasury bonds to touch levels last seen around the 2008 financial crisis. 

But rates are unlikely to stay this high for long, Krugman argued,…

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This article was written by [email protected] (Jennifer Sor) and originally published on markets.businessinsider.com