RE: Re: RE: Re: P.S.

["Devine, James" <jdevine@xxxxxxx>]

have _real_ interest rates really gone negative? Deflation boosts real
interest rates.

Jim Devine jdevine@xxxxxxx &  http://bellarmine.lmu.edu/~jdevine



> -----Original Message-----
> From: Sabri Oncu [mailto:soncu@xxxxxxxxxxx]
> Sent: Saturday, May 11, 2002 1:31 PM
> To: PEN-L
> Subject: [PEN-L:25893] Re: RE: Re: P.S.
>
>
> http://www.jei.org/Archive/JEIR98/9843w2.html
>
> Jim and Micheal,
>
> Take a look at the above as an example. A google search with:
>
>    Japan "negative interest rate"
>
> brings a ton of information. I know it because of my favorite
> inetrest rate model: the Vasicek model. Oldrick (Vasicek) is a
> friend and this is mainly why I like it so much. Well, just
> kidding, this is of course the secondary reason: it is an easy
> model to implement, this is the real reason. People did not like
> his model because it implied that interest rates can go negative.
> When Japanese rates went negative, people started to like his
> model again.
>
> Best,
>
> Sabri
>
>