Americans want prices to go down, but deflation could spark a wave of unemployment, top economist Paul Krugman says

Wed, 07/17/2024 - 12:18

Inflation has practically wiped out excess savings from the pandemic, according to an analysis from Bespoke Investment. — There's a good reason why prices haven't returned to where they were before the pandemic, according to Nobel laureate Paul Krugman.
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Falling prices could bring on a spike in unemployment and wage cuts, according to Paul Krugman.
The Nobel economist pointed to pressure from consumers to lower high prices.
The US appears to be entering a soft landing, he said, where inflation eases without a rise in unemployment.

Americans hate high prices — but there's a reason people should hope the cost of goods and services don't drop back to pre-pandemic levels, according to Nobel laureate Paul Krugman.