April 15, 2014
IN OTHER WORDS...:
Losing Interest (Barry Eichengreen, APR 11, 2014, Project Syndicate)
Adjusted for inflation, interest rates have been falling for three decades, and their current low level encourages investors, searching for yield, to take on additional risk. Low rates also leave central banks little room for loosening monetary policy in a slowdown, because nominal interest cannot fall below zero.
..inflation has been overstated for three decades.
Posted by Orrin Judd at April 15, 2014 4:47 AM