Dollars and Jens
Thursday, April 22, 2004
neutral interest rates
We can easily tell the so-called natural rate today by observing the yield of the inflation-protected Treasury bond
Kudlow's beat this drum before, and while the traders I know revere Kudlow — insofar as they're reverent, which isn't insoveryfar — if real long-term rates were 2% and nominal were 10%, I have trouble thinking a funds target of 5% would be tight — or anything but exacerbating.

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