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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: zonder who wrote (5404)	9/18/2002 10:59:59 AM
From: GraceZ	Respond to of 306849

Inflation has been a given for longer than anyone can remember but the rate of inflation and interest rates peaked in 1982 and the rate has dropped with some fits and starts for the last 20 years. I remember money market returns back in 1981 being somewhere around 17 percent. I remember it because I was working on a job for T.Rowe Price and we had the woman we were working with call the daily rate up over the phone (this was before everyone had a computer on their desk). There hasn't been any deflation it's always been inflation but the rate has dropped considerably over 20 years. This is what is referred to as dis-inflation. BTW if you want to see two series together, download the data and plug the two series into Excel and have Excel generate a chart (it wouldn't be a difficult formula to get Excel to calculate the monthly difference). Its an eye opener to see interest rates and the inflation rate on the same graph.