Re: C-span hearings

["Per Gunnar Berglund" <pgb@xxxxxxxxxxxxxxxxxx>]

Lynn,
Thanks for comments. I will throw in some more below:

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Lynn Turgeon wrote:
> Per, Wouldn't the goal of zero real interest represent the euthanasia of
the
> rentier?

Per Gunnar Berglund reply:
May he rest in peace!

LT
> What about less developed countries? Wouldn't they be expected to
> require higher real interest rates?

PGB
I do not know very much about LDC economy, and I do not wish to be
presumptuous. But basically, I would think that low capital costs is good
for any economy, LDC or industrial. Low capital costs are, of course,
brought about by low real interest rates.

LT
> I seem to recall that Keynes thought that
> capital markets should be national rather than international.

PGB
Yes, so do I recall. But with today's system of international financial
markets, it is often argued that the real interest rates will be equalised,
if not in the short run, then in the longer run. If this is true, then real
rate management would basically be an international, or global affair.

Best,
Per


Per Gunnar Berglund
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