Negative Federal Funds Rate?

Doug Henwood dhenwood at panix.com
Fri Nov 8 15:39:50 PST 2002


H. Curtiss Leung wrote:


>So the Fed dropped the target for the Federal Funds rate to 1.25%, which,
>according to the WSJ article on the rate decreases, is below the Fed's
>1.8% inflation figure. So we've got a negative real interest rate for
>this money, yes?
>
>Two questions:
> --Has this ever happened before?
> --Does this amount to a polite admission that deflation could be
> a real problem?

I've just put up a page on this at <http://www.leftbusinessobserver.com/Real_short_rates.html>.

Doug



More information about the lbo-talk mailing list