Let me first protest about the framing: it is not real inflation-adjusted risky interest rates that have been coming down for three decades: it is safe nominal interest rates, and even more so safe nominal interest rates that have been coming down (as the exaggerated early 1980s inflation premium has been wrung out). If we … Continue reading Why Not a 4%/Year Inflation Target? Or a 6.5%/Year Nominal GDP Growth Target: Friday Focus: April 4, 2014