If we can’t cure the economic cold, maybe we should bring on economic pneumonia.

By: Flagstaff (Diary)  |  December 18th at 07:12 PM  | 

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 »