If we can’t cure the economic cold, maybe we should bring on economic pneumonia.
You remember the old joke to that effect? We know how to cure pneumonia? Blackhedd recently provided an explanation of how “a zero nominal interest rate might correspond to a real interest rate that is hundreds of basis points higher” if expectations are for a deflationary period. I took it to mean that since the original principal must eventually be repaid, even a zero interest | Read More »