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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (31339)	1/12/2009 6:53:44 PM
From: TimF	Read Replies (1) \| Respond to of 71588

The Fed has other tools in its arsenal besides the fed rates. Also real fed rates can go below zero. (Not that I'm saying they will or should, just that they can). Nominal rates can't. (well I suppose in theory they could as well, but I doubt anyone would actually every buy a security with a negative real and nominal return. Give me $1000 now and I'll give you back $950 in two years?? Really, people would just keep the money under the mattress instead...)