Journal Article

Focus on Low Real Interest Rate Might Be Misplaced


Abstract: When investors complain about low interest rates, they are usually referring to the rates on government bonds, particularly TIPS (Treasury Inflation Protected Securities). But such rates should not be seen as proxies for the rates of return on all investments. Real returns to productive U.S. fixed investment in tangible capital have not fallen over the past 25 years.

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Provider: Federal Reserve Bank of St. Louis

Part of Series: The Regional Economist

Publication Date: 2016

Issue: Jan

Order Number: 1-4