The Uncertain Future of Interest Rates.
Larry Summers and Olivier Blanchard, two leading macroeconomists, are debating the future of interest rates. Summers believes that we are likely going to stay in an era of higher interest rates due to political and economic factors that will reduce savings and increase investment. Blanchard disagrees and believes that secular stagnation will wake up from its slumber and we'll soon be back in an economy that looks like the one we saw before the pandemic. The debate has important implications for the cost of borrowing, the housing market, the stock market, and the capacity of the government to borrow and spend.