Real vs. Nominal Interest Rates
What is the real interest rate? It is the nominal rate minus the inflation rate. This is a problematic idea. Let’s drill deeper into…
Read MoreWhat is the real interest rate? It is the nominal rate minus the inflation rate. This is a problematic idea. Let’s drill deeper into…
Read MoreThe earliest signs are developing of hyperinflation, more correctly described as a collapse of the purchasing power of all the major government currencies. Central…
Read MoreBy Jeffrey P. Snider Everyone knows about lies, damned lies, and statistics. The quote has been attached to Mark Twain who apparently attributed to…
Read MoreThe popular belief is that gold is a good hedge against inflation. Owning gold will protect you from rising prices. Is that true? Most…
Read MoreOn Wednesday Dec 16, Federal Reserve Chair Janet Yellen announced that the Fed was raising the federal funds rate by 25 basis points. Let’s…
Read More“I can say therefore with confidence – and without any complacency – that we will secure the return of inflation to 2% without undue…
Read MoreOne can understand the Fed’s frustration over the failure of its interest rate policy, and its desire to escape the zero bound. However, since…
Read More“Risk is what’s left over when you think you’ve thought of everything.” – Carl Richards. By the time this financial crisis is over, a…
Read MoreI wrote a story about poor Clarence who retired in 1979, and even poorer Larry who retired last year. I created these characters to…
Read MoreHyperinflation is commonly defined as rapidly rising prices which get out of control. For example, the Wikipedia entry begins, “In economics, hyperinflation occurs when…
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