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To: BGR who wrote (49379)6/25/1999 12:14:00 PM
From: Investor2  Read Replies (1) | Respond to of 86076
 
Re: "Hence, if you expect future inflation to be high, you are going to charge more for loans."

Yes, I realize that. However, what I charge for loans has little to do with the "real" interest rate that I receive. For example, consider this case: I expect future inflation to be 3% and I charge 6.5% for my loan. Time passes and actual inflation turns out to be 6.5%. My "real" interest rate is 0%.

Best wishes,

I2


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