Jim: >>My numbers say that the real interest rate in the US rose pretty
steeply in 2001 (the crisis year)...<<
Karl: >You must joking. The interest in 2001 where historically quite low. It is just that they have even lower now (the US).<
I may be wrong, but not joking. If you take the long-term (20 year) treasury bond rate and subtract the inflation rate, you get (one) estimate of the long-term real interest rate. It rose during 2001, even though the short-term nominal rate fell steeply.
JD
