I take long-term historical studies like this is a large grain of salt, for lack of homogeneity and the difficulty in obtaining reliable data, for example, but it is interesting to look at anyway with caveats.What is probably most interesting about it now is that the Bank of England is apparently looking at this. Conclusion On aggregate, then, the past 30-odd years more than hold their own in the ranks of historically significant rate depressions. But the trend fall seen over this period...
Read More »How To Euthanize Rentiers (Wonkish)
In my last post, I established that the “rentier’s share” of interest — resulting from as Keynes put it the “power of the capitalist to exploit the scarcity-value of capital” — can be calculated as the real-interest rate on lending to the monetary sovereign, typically known as the real risk free interest rate. That is because it is the rate that is left over after deducting for credit risk and inflation risk. However, I have been convinced that my conclusion — that euthanizing rentiers...
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