Thoughts for Coral Gables’ Town Fathers/Mothers

You may not like Paul Krugman’s politics, but so far his economics have been right on interpreting current economic events.

In short, he says we are in for a long haul of slow growth, stagnation and high unemployment.  Bad for Florida, and Bad for Coral Gables; this makes it even more urgent for the City of Coral Gables to get its financial house in order.  Commissioners, please don’t plan on the economy and property values returning to the last decade’s trend ever.

…how unreasonable are current long-term interest rates given current macroeconomic forecasts? I mean, at this point almost everyone expects unemployment to stay high for years to come, and there’s every reason to expect low or even negative inflation for a long time too…

via The Taylor Rule And The “Bond Bubble” (Wonkish) – Paul Krugman Blog – NYTimes.com.