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.
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.