Wednesday, 31 August 2016

Negative rates only negative under Historical Cost paradigm

Negative interest rates are only negative under the nominal Historical Cost Accounting paradigm.

The effect of negative interest rates is always positive under the Units of Constant Purchasing Power in terms of the Daily CPI paradigm during deflation.

Nicolaas Smith Copyright (c) 2005-2016 Nicolaas J Smith. All rights reserved. No reproduction without permission.

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