On Thu, 24 Feb 1994 10:15:41 -0800 JGulick said:
>I don't know what Marx said, but I do know _real_ short-term interest
>rates in the 1970's were frequently _negative_ in real terms. That is,
>the annual inflation rate was higher than the rate of profit for
>finance capital. I think so anyway.
>
You're right: it turned out that real interest rates were negative
after the fact (ex post). But were they expected to be so ahead
of time (ex ante)? In any event, nominal interest rates rose
dramatically so that short rates were positive again. It took
longer for long-term interest rates to adjust...
at least that is my impression.
in pen-l solidarity,
Jim Devine BITNET: jndf@lmuacad INTERNET: [EMAIL PROTECTED]
Econ. Dept., Loyola Marymount Univ., Los Angeles, CA 90045-2699 USA
310/338-2948 (off); 310/202-6546 (hm); FAX: 310/338-1950
