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To: TimF who wrote (52081)8/22/2001 8:31:32 PM
From: AK2004Read Replies (1) | Respond to of 275872
 
Tim
re: I think the real interest rate does matter.
I agree but "real" interest is not that easy to control.
re: If that was it then the best strategy would simply be to keep rates high almost all the time
yes and no, looking at the chart of US 10 year T rates for the last 200+ years I see that only during very short period our rates were actually lower than they are right now. Rates started to drop from relatively high, for the time, levels of 6% in 1924 and were dropping all the way into mid 1940's to ~2% which seems had very little effect on depression. On the other hand after-war years were good for US yet that was the time of steadily rising rates.
Regards
-Albert