Academic Economists vs. Financial Analysts: Who Is Right About the Bond Market?

Olivier Blanchard, chief economist at the IMF Photograph by Andrew Harrer/Bloomberg

Academic and policy economists are taught to leave market predictions to the well-paid folks in the financial industry. But lately, not only are they coming out with bold predictions, their expectations are the complete opposite of what industry expects. Financial industry experts say interest rates will rise, the only question is when. Meanwhile, several prominent economists have released an e-book (PDF) arguing rates will stay low for the foreseeable future, perhaps for decades.

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