Re:Can the West’s perplexing employment miracle continue?
by nohuck13 on Monday March 06, 2023 @03:17AM
(#35038659)
"Real" is a term of art for something inflation-adjusted, as opposed to nominal. That's it. Of course you can have expectations about it: they would inform your decisions about what to invest in or borrow.
Re:Can the West’s perplexing employment miracle continue?
by ElevenLathe on Monday March 06, 2023 @09:11AM
(#35041194)
"real interest rate" is also sometimes an informal way to refer to r* ("r star"), the discussion of which is definitely into metaphysical territory!
this is just about making a prediction of the future.
if you believe that inflation will decrease then your guaranteed rate of return from interest rates is great.
if you believe that inflation will increase or stay the same, then yes we have "negative interest rates"
I don't think it's reasonable to call it a "real" interest rate, because I can't buy T bills against it and it has no guarantees