Well, if real interest rates are negative, everything reverses, and you should start favoring more expensive things now.
Also, it’s possible to be realistic and say things like “if 2 + 2 = 5, then 5 = 2(1+1) and therefore isn’t prime”.
Well, if real interest rates are negative
At the moment, TIPS (US government securities that pay interest + whatever inflation turns out to be) trade at negative yield for maturities up to five years.
you should start favoring more expensive things
That’s the point of monetary stimulus, among other things.
Well, if real interest rates are negative, everything reverses, and you should start favoring more expensive things now.
Also, it’s possible to be realistic and say things like “if 2 + 2 = 5, then 5 = 2(1+1) and therefore isn’t prime”.
At the moment, TIPS (US government securities that pay interest + whatever inflation turns out to be) trade at negative yield for maturities up to five years.
That’s the point of monetary stimulus, among other things.