In recent years, economists have argued about the true value of the real interest rate at any

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In recent years, economists have argued about the true value of the real interest rate at any one time and over time. Given that Nominal interest rate 5 Real interest rate 1 Expected inflation rate, it follows that Real interest rate 5 Nominal interest rate 2 Expected inflation rate. Why do you think that there is so much disagreement over the true value of the real interest rate?

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Microeconomics

ISBN: 9780357720639

14th Edition

Authors: Roger A. Arnold, Daniel R Arnold, David H Arnold

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