Inflation & Prices

Nobel Economist Krugman Says Markets Too Confident Inflation Is Over

Inflation cools but investors are discounting risk: Krugman
He says easing financial conditions may reignite inflation

WATCH: Nobel laureate Paul Krugman says he is a “little worried” that financial markets have discounted the threat of inflation too early. Source: Bloomberg

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By Katia Dmitrieva

January 30, 2023 at 6:22 PM UTC

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Nobel laureate Paul Krugman said he’s concerned investors have put inflation risk in the rear-view mirror too soon, and that easing financial conditions could spark it again.

“I’m a little worried that the markets may be getting ahead of themselves,” Krugman said Monday on Bloomberg Television’s “Balance of Power” with David Westin. “The markets are pricing in that inflation is over. That could be a self-denying prophecy.”