What did Arthur Laffer predict about the economy in June 2009?
Arthur Laffer, Economist, former Reagan economic policy adviser, chairman of Laffer Associates ·
We can expect rapidly rising prices and much, much higher interest rates over the next four or five years, and a concomitant deleterious impact on output and employment not unlike the late 1970s.
CPI ~2%/yr; 10-yr yield 3.72% to 2.60%
Laffer predicted rapidly rising prices and much higher interest rates over four or five years. Prices rose about 2% a year, and the 10-year Treasury yield fell from 3.72% to 2.60%.
Consumer prices rose 10.5% in total from June 2009 to June 2014, about 2% a year (BLS CPI-U). The 10-year Treasury yield fell from 3.72% in June 2009 to 2.60% in June 2014 (Federal Reserve via FRED series GS10).
Prediction vs. outcome · Economy
Added · Updated
The claim
- Date
- Where
- Wall Street Journal op-ed, "Get Ready for Inflation and Higher Interest Rates."