Emeritus Prof Christopher May on Nostr: npub10kcan…mqjyy Its a really interesting issue - real (as opposed) to nominal ...
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Its a really interesting issue - real (as opposed) to nominal interest rates have generally (I recall too) been negative... but as Keynes pointed out in his discussion of money illusion, given that often interest rates are targeting sentiment rather than actual market activity, that may not matter so much?
But its an interesting set of issues... and see this IMF blog that would seem to suggest a longish period of positive real interest rates around the 1980s
https://www.imf.org/en/Blogs/Articles/2023/04/10/interest-rates-likely-to-return-towards-pre-pandemic-levels-when-inflation-is-tamed
Its a really interesting issue - real (as opposed) to nominal interest rates have generally (I recall too) been negative... but as Keynes pointed out in his discussion of money illusion, given that often interest rates are targeting sentiment rather than actual market activity, that may not matter so much?
But its an interesting set of issues... and see this IMF blog that would seem to suggest a longish period of positive real interest rates around the 1980s
https://www.imf.org/en/Blogs/Articles/2023/04/10/interest-rates-likely-to-return-towards-pre-pandemic-levels-when-inflation-is-tamed