Paul Krugman with a trip down memory lane: You probably remember [the 1990s] as a time of prosperity — low unemployment and rapid economic growth combined with low inflation — marred by irrational exuberance in the stock market. Pets.com anyone? What you might not realize is how closely the economy of early 2024 resembles that of the late Clinton years. People might not be feeling the prosperity — or at least they say they aren’t feeling it, because there’s a huge gap between Americans’ positive assessment of their personal financial situation and their negative assessments of the economy. But by the numbers, things look pretty good. Notably, unemployment is actually a bit lower now than it was at the end of the roaring ’90s. He notes that inflation spiked in 2021-22 but that according to one good measure it’s actually come down to a level that’s barely above the Fed’s target rate. What about interest rates? Well, people have forgotten that interest rates were higher during the 90s and mortgage rates were even higher than they are now: Needless to say, the stock market was soaring as it is today. All of this leads Krugman to think that interest rates might remain high for longer that we might have thought. [U]ntil recently it didn’t seem likely that the conditions that kept interest rates high a generation ago would re-emerge. The working-age population seemed set to stagnate or even shrink, given low fertility and the aging of the baby boomers. Technology continued to advance, but…