Re:Does QE Cause Wealth Inequality?
by medvezhenok on Thursday November 18, 2021 @08:30PM
(#29272788)
That's not what that chart is saying.
That's the coupon rate paid by a bond bought at that time (in the late 90s the bonds paid a real return of 3%, which when added to the current 7.12% inflation rate gives a nominal return of 10.12% for the next 6-months).
The rate of those bonds was 3.5% just a month ago, and historically averages around 2%.
That's the coupon rate paid by a bond bought at that time (in the late 90s the bonds paid a real return of 3%, which when added to the current 7.12% inflation rate gives a nominal return of 10.12% for the next 6-months).
The rate of those bonds was 3.5% just a month ago, and historically averages around 2%.