Attention Economy


Thursday, December 7, 2023

Long-Term Rate Outlook - Is the Easy Money Era Over?

Double Trouble: Investors Fight the Fed on Two Fronts
https://www.wsj.com/economy/central-banking/double-trouble-investors-fight-the-fed-on-two-fronts-89915948
Rate expectations have plunged for next year, but further out they are still high

Higher Interest Rates Are Here to Stay
https://www.project-syndicate.org/commentary/era-of-low-interest-rates-has-come-to-an-end-by-kenneth-rogoff-2023-12
Harvard’s Ken Rogoff:
The long-standing economic consensus that interest rates would remain low indefinitely, making debt cost-free, is no longer tenable. Even if inflation declines, soaring debt levels, deglobalization, and populist pressures will keep rates higher for the next decade than they were in the decade following the 2008 financial crisis.
 
My take: 
Back to the future? The new interest rate normal might look a lot like the pre-crash era
https://thehill.com/opinion/finance/4299865-back-to-the-future-the-new-interest-rate-normal-might-look-a-lot-like-the-pre-crash-era 


End of the Easy Money Era
The Era of Easy Money Is Over. That’s a Good Thing.
https://www.theatlantic.com/ideas/archive/2023/12/higher-interest-rates-fed-economy/676282/
The end of artificially cheap money should herald a fairer, more sustainable economy. Americans just have to survive the transition.

 
Age of Easy Money (full documentary) | FRONTLINE