On Monday, August 1, 2011 at 16:45:18 (-0400) Shane Mage writes: > > >> On Monday, August 1, 2011 at 09:02:23 (-0700) Jim Devine writes: >>> Bill Lear wrote: >>>> My brother has advanced the novel idea that borrowing at negative >>>> real >>>> interest rates is what brought on the inflation of the 1970s. > >A "novel" idea indeed. The opposite was the case. The Fed never lent >at negative interest rates (until a few recent, passing, episodes) and >it certainly didn't do so in the 1970's. It was inflation that >brought about negative (expected) real interest rates and thus >multiplied borrowing--as has been the case in every cumulative >inflationary process throughout history.
Any way you can share some data to support this? What sorts of indices would I look at? Bill _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
