the government can't truly raise or lower the interest rate; they can only raise or low the inflation rate, which looks like the interest rate going up (nominal, not real). I believe.
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Replying to @ITBeHa
that's the way it works on paper - USG sets the interest rate ...but what I'm saying is that they can only set the NOMINAL interest rate. They can set it to 20% if they want! ...but inevitable output is 2% real rate, and 18% inflation.
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Replying to @ITBeHa
in general, "nominal" means "the number" and "real" is "whatever the numbers say, minus the inflation". If a bank pays 4% on deposits, but inflation is 1%, then the nominal interest rate is 4%, but the real interest rate is 3%. https://en.wikipedia.org/wiki/Real_versus_nominal_value_(economics) …
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Replying to @ITBeHa
The core point I'm making is "if the market is willing to support an interest rate of 5% above inflation, the USG can not / does not keep the interest rate to 2% over inflation" You disagree, I think? i.e. you think if not for the gov intervening, you might be earning 5% now?
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yeah, maybe there/ later busy at work (side job) right now
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