Krugman: Inflation Fears Are Fading

Paul Krugman points to the falling 2-year breakeven rate shown above, which is the implied bond market expectation of inflation over the next two years, measured by the difference in yields between regular and inflation-indexed 2-year T-notes.  The current 2-year breakeven rate is about 1%, down from 2.5% in May, and suggests that inflationary fears are fading. 

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Krugman: Inflation Fears Are Fading

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