Time for Positive Interest Rates for Savers

David C Rose; Max Gillman; Max K Gillman

Time for Positive Interest Rates for Savers

David C Rose, Max Gillman, Max K Gillman

University of Missouri-St. Louis

Research output: Other contribution

Abstract

In “Pause Interest-Rate Hikes to Help the Labor Force Grow” (op-ed, Oct. 26), Federal Reserve Bank of Minneapolis President Neel Kashkari is mistaken in two important ways. Federal Reserve interest rates of 2% to 2.25% aren’t neutral if the inflation rate is 2.61%, as it is as of the third quarter of 2018. This gives a negative real interest rate of at least 0.36%. Only a positive rate of real interest in the 2% to 3% range is “neutral,” as during phases of the high-growth era of the 1980s and 1990s.

Original language	American English
State	Published - Nov 1 2018

Disciplines

Economics
Regional Economics

Cite this

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title = "Time for Positive Interest Rates for Savers",

abstract = " In “Pause Interest-Rate Hikes to Help the Labor Force Grow” (op-ed, Oct. 26), Federal Reserve Bank of Minneapolis President Neel Kashkari is mistaken in two important ways. Federal Reserve interest rates of 2% to 2.25% aren{\textquoteright}t neutral if the inflation rate is 2.61%, as it is as of the third quarter of 2018. This gives a negative real interest rate of at least 0.36%. Only a positive rate of real interest in the 2% to 3% range is “neutral,” as during phases of the high-growth era of the 1980s and 1990s.",

author = "Rose, {David C} and Max Gillman and Gillman, {Max K}",

note = "In {"}Pause Interest-Rate Hikes to Help the Labor Force Grow{"} (op-ed, Oct. 26), Federal Reserve Bank of Minneapolis President Neel Kashkari is mistaken in two important ways. Federal Reserve interest rates of 2% to 2.25% aren't neutral if the inflation rate is 2.61%, as it is as of the third quarter of 2018.",

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month = nov,

day = "1",

language = "American English",

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T1 - Time for Positive Interest Rates for Savers

AU - Rose, David C

AU - Gillman, Max

AU - Gillman, Max K

N1 - In "Pause Interest-Rate Hikes to Help the Labor Force Grow" (op-ed, Oct. 26), Federal Reserve Bank of Minneapolis President Neel Kashkari is mistaken in two important ways. Federal Reserve interest rates of 2% to 2.25% aren't neutral if the inflation rate is 2.61%, as it is as of the third quarter of 2018.

PY - 2018/11/1

Y1 - 2018/11/1

N2 - In “Pause Interest-Rate Hikes to Help the Labor Force Grow” (op-ed, Oct. 26), Federal Reserve Bank of Minneapolis President Neel Kashkari is mistaken in two important ways. Federal Reserve interest rates of 2% to 2.25% aren’t neutral if the inflation rate is 2.61%, as it is as of the third quarter of 2018. This gives a negative real interest rate of at least 0.36%. Only a positive rate of real interest in the 2% to 3% range is “neutral,” as during phases of the high-growth era of the 1980s and 1990s.

AB - In “Pause Interest-Rate Hikes to Help the Labor Force Grow” (op-ed, Oct. 26), Federal Reserve Bank of Minneapolis President Neel Kashkari is mistaken in two important ways. Federal Reserve interest rates of 2% to 2.25% aren’t neutral if the inflation rate is 2.61%, as it is as of the third quarter of 2018. This gives a negative real interest rate of at least 0.36%. Only a positive rate of real interest in the 2% to 3% range is “neutral,” as during phases of the high-growth era of the 1980s and 1990s.

UR - https://www.wsj.com/articles/time-for-positive-interest-rates-for-savers-1541092241?mod=searchresultspage=1pos=16

UR - https://www.wsj.com/articles/time-for-positive-interest-rates-for-savers-1541092241

M3 - Other contribution

ER -

Time for Positive Interest Rates for Savers

Abstract

Disciplines

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