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Re:DigitalOcean Is Doing Layoffs Right Now by JumpCrisscross on Wednesday February 15, 2023 @09:48AM (#34804509)
> rates are 5% and inflation is 7%, real rates are -2% (maybe -3 or -4% after tax) which is worse than before

Spot real rates versus long-term inflation expectations. If you think we’ll be at 3 or 4% inflation long term, the short term bite is fine. As such, yes, higher nominal rates, even if lower in real terms in the short run, can still have this effect.

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