All articles tagged with #paul krugman
Economist Paul Krugman warns that the US economy under Trump is in worse shape than it appears, with a bifurcated landscape where AI investment booms while the broader economy remains stagnant, creating uncertainty and risking a recession.
Donald Trump publicly attacked economist Paul Krugman on social media, criticizing his predictions and calling for a lawsuit against The New York Times, amid preparations for a major announcement on addressing homelessness and crime in Washington DC, including potential deployment of the National Guard.
Paul Krugman criticizes Donald Trump for dismissing the weak July jobs report as 'rigged,' arguing that such accusations are a sign of paranoia and projection, and highlighting the risks of ignoring economic slowdown data.
Nobel laureate Paul Krugman criticizes China's leaders for their reluctance to boost consumer demand through government spending, warning that this lack of realism poses a global threat.
Nobel economist Paul Krugman warns that China is entering an era of stagnation and disappointment due to its unsustainable economic model, characterized by ultra-low consumer spending and heavy reliance on investment. He compares China's situation to Japan's economic struggles in the 1980s but expresses concern that China may not emerge as unscathed. Krugman attributes part of the problem to President Xi Jinping's interventions and emphasizes the need for China to address its economic woes without resorting to military adventurism.
Nobel economist Paul Krugman suggests that Wall Street's dream of "immaculate disinflation" is becoming a reality, as inflation is coming down without sparking a recession. Despite pockets of gloomy sentiment, the economy is actually performing better than people think. The US job market remains resilient, with a low unemployment rate, and GDP saw strong growth. Krugman argues that the negative view of the economy is puzzling, as evidence shows it is currently performing well. Investors are optimistic about a soft-landing and expect positive returns for stocks in 2024, as cooling inflation may lead to the Federal Reserve loosening monetary policy.
Economist Paul Krugman has declared victory over inflation, claiming that the "war on inflation is over" and that we won at "very little cost." However, critics argue that Krugman's calculations are flawed as he measures inflation using a narrow definition that excludes food, energy, shelter, and used cars. The Consumer Price Index (CPI), which includes these factors, was 3.7% in September, higher than forecasts. Additionally, wage stagnation and the perception of a struggling economy among average Americans suggest that the battle against inflation is far from over for many.
Nobel economist Paul Krugman warns that China is on the brink of a severe economic crisis, as its current measures to stave off the crisis have reached their limits. Despite being a communist country, China's leaders are reluctant to provide welfare and consumer aid, hindering their ability to address deflation, massive debt, falling growth, and rising unemployment. Krugman argues that China needs to embrace a larger stimulus program and allow its citizens more spending independence. Failure to do so could lead to a political crisis as the legitimacy of the government, which is based on past economic growth, comes into question.
Economist Paul Krugman commends the US economy, highlighting the significant decline in the "misery index," an indicator measuring inflation and unemployment. Krugman attributes the index's fall to the avoidance of a recession, the addition of four million jobs, and a rapid decline in inflation. He praises President Joe Biden's economic track record and notes that the US economy is performing well compared to other Western countries.
Nobel laureate Paul Krugman suggests that premium bonds would be a better solution to the debt ceiling problem than minting a $1 trillion coin, which could cause inflation to soar and has a credibility issue. Krugman believes the Treasury could offer premium bonds, or bonds that trade higher than their face value due to a high coupon rate relative to prevailing market rates, and raise money without increasing the national debt. The debt ceiling debate has grown increasingly heated in Washington, with Republicans pushing for strict spending cuts in a bill that Democrats have labeled a “ransom note,” while the Biden administration insists the debt ceiling must be lifted with no strings attached.
Nobel laureate Paul Krugman suggests that minting a $1 trillion platinum coin to pay bills and prevent a US debt crisis wouldn't worsen inflation, as the Fed would likely sell $1 trillion worth of government bonds to offset any inflationary effects. Krugman thinks the government is more likely to issue "premium bonds" to avoid default than mint a $1 trillion coin. The projected deadline for the US debt default is approaching, with no signs of progress on a deal to lift it.
Nobel Prize-winning economist Paul Krugman said that the dollar's dominance of global trade and investment flows is overrated, and isn't worth more to America than "a fraction of 1% of its GDP". Krugman advised it would be best to ignore all the "dollar doomers" out there and instead question what "hyping of a nonissue says about their own judgment." He also criticized Elon Musk for being among those who are warning the US is "weaponizing" the dollar through financial sanctions and that such measures are threatening to undermine the greenback's supremacy.
Economist Paul Krugman criticized Florida Governor Ron DeSantis' opposition to a central bank digital currency (CBDC), suggesting that DeSantis may be motivated by "general paranoia" and influenced by individuals who fear a digital currency could hinder "un-woke activities such as tax evasion and money laundering." Krugman argued that if the Federal Reserve creates a CBDC, it is "highly unlikely that a state government would have the right to prohibit its use." Krugman also noted that the current financial system is already largely digital and that some people do not have bank accounts or trust banks.
Nobel laureate Paul Krugman has said that the Federal Reserve may have already won its fight against inflation and is overly fixated on flawed price measures. Krugman cautioned that the Fed risked missing out on an "immaculate disinflation" scenario if it lifted interest rates too high. The Fed's chosen inflation gauge, the Personal Consumption Expenditures index, has been cooling at a slower rate than other measures, and Krugman said the central bank was using "kind of a one-eyed bearded man with a limp measure of inflation to suggest that we are not actually seeing improvement."
Nobel laureate Paul Krugman has said that Russia's attempt to weaponize natural gas prices has failed, and the country's superpower status is a facade. Europe managed to navigate the last winter despite Russia slashing its gas supplies in retaliation for Western sanctions. EU nations built up an impressive stockpile of natural gas that went largely unused amid warmer temperatures, and the eurozone avoided a financial catastrophe, managing high inflation without spiking unemployment. Meanwhile, Russia's energy revenue has crashed 50% from last year, and the country is facing a wider budget deficit as it ramps up spending during its military invasion.