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The future may be cheaper than thought

Economists have consistently overestimated - and thus overstated - interest payments on 10-year Treasury bonds. The systemic error in their model should be removed

Globalisation and the interconnectedness of the financial markets have led to a big jump in capital available, and lowered the cost of capital in ways the models are missing.

New York

GOVERNMENT economists try to predict the future of lots of indicators, including Gross Domestic Product (GDP), unemployment and inflation. Their record isn't great, whether here or overseas. No less a figure than the queen of England said to scholars at the London School of...

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