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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Jim McMannis who wrote (84408)	9/3/2008 3:00:18 AM
From: mishedlo	2 Recommendations Read Replies (3) of 116555

Real Interest Rates Are High globaleconomicanalysis.blogspot.com I am going to make a shocking statement. Here it is: Real interest rates are high. Before stating the basis for such a seemingly wild claim it is important to define some terms. In this case "real" means inflation adjusted. Of course this means we have to agree on the meaning of the word "inflation". For this discussion I am going to waver from my usual stance that "Inflation is an increase in money supply and credit" to something mainstream. For this post, let's assume that "Inflation in an increase in the price of a representative basket of goods and services". .... Mish

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