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October 9 at 10:20 am
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w0nk0, Morton Fox and Chris White liked this
Nice chart that clearly explains why the latest rate cut was a complete waste of time. Those two lines should converge, not diverge. - Kevin D. White
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Has the US ever cut rates below 1%? I think the Japanese went negative for a while., which is an interesting concept. - Chris White
You are confusing the real rate with the nominal rate. The latter can't be negative while the former, adjusted for inflation, can. - Kevin D. White
No, I actually wasn't confusing the two. There were reports of negative nominal rates in Japan in 1998. http://econospeak.blogspot.com... - Chris White
Interesting article. Not to put too fine a point on it but I was referencing the announced target federal funds rate and the Japanese equivalent. It is possible though highly unusual for discrete transactions to have a negative rate based on market conditions. - Kevin D. White