Is Sound Money the Answer? with George Gammon (WiM268)
The "What is Money?" Show
The Feds Two Cardinal Sins
When CPI is above the market interest rate is what you're calling negative real rate yeah so let me and I apologize because I'm kind of comparing apples to oranges but I think it's a close enough comparison. Even at four percent if you had periods of higher inflation negative real rates you would still be compensated and you would still increase your purchasing power which is probably why people were more than willing to buy them at three or four percent whatever the going rate was. Irving Fisher came up with the equation for long-term rates where it's just a combination of growth and future inflation expectations and so that would make sense as to why you saw negative real rates back then with a market rate.
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