- Jun 24, 2006
- 3,248
- 1
- 81
I'm reading this article, and the economist says:
How is this right? I understand that if inflation is greater than the interest rate paid on the money market accounts, then those deposits have negative returns, but I keep hearing that we currently have very low, or negative inflation.
We have had short-term interest rates at negative real levels for two years (which means anyone invested in money market funds gets less back than they put in)
How is this right? I understand that if inflation is greater than the interest rate paid on the money market accounts, then those deposits have negative returns, but I keep hearing that we currently have very low, or negative inflation.