Krugman’s blog, 5/11/15

There was one post yesterday, “Interest Rates Are Still Very Low:”

Sorry about blog silence; still trying to get as much as possible of my great office cull done before I leave for England. Here’s the scene right now:

But I thought I should take time out for a public service announcement — a reminder that despite having bounced recently, interest rates, especially in Europe, are still very low.

People are, understandably, reeling a bit from this:

But it’s important to understand that 0.6 percent is still a very, very low rate by any historical standard. And if you look at yields on index bonds, you find that German real rates are still strongly negative.

One way to say this is that the financial data still point to lowflation and maybe secular stagnation, just not as strongly as they did a couple of months ago.



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