Tuesday, August 21, 2012

Economic Bloggers and Nominal Rates of Return in the US

I had the opportunity to ask major economic bloggers (in the latest Econ Blog Survey) about their long-term expectations regarding nominal rates of return for low-risk assets in the US. Below you'll find a summary of their answers.

It's interesting to notice that a large majority of the bloggers do not think that we'll see, at least in the short term, a reenactment of the historical pattern observed since the creation of central banks, that is, they usually increase short-term interest rates (and by arbitrage nominal rates of return for low-risk assets) fast and frequently after losing control of inflation rates.

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