Central Banks
Summers, Blanchard Spar Over Long-Run Level of Interest Rates
- Summers sees them significantly higher, Blanchard not so sure
- Neither sees rates returning to super-low pre-pandemic levels
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Former Treasury Secretary Lawrence Summers took the over while ex-International Monetary Fund chief economist Olivier Blanchard took the under in a good-natured debate on Tuesday about the level of interest rates over the long haul.
While Summers said he expects rates to be substantially higher on average in the years ahead, Blanchard was more guarded about where they’ll end up settling after inflation is vanquished.