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Old 02-10-2016, 01:13 PM
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whoanonstop whoanonstop is offline
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Quote:
Originally Posted by JMO View Post
A little bit of context. For those of us who rely on our investments, low interest rates are bad. Negative interest rates are very bad. Maybe not so much for the rest of the world, I will admit.
Well, if we're associating low interest rates with a deflationary environment, would it make a difference? I'm not sure how some life/retirement products are designed, so I'm fairly naive, but let's say the case was simple:

Besides some small differences, the rate of return on a 7% interest rate in a 2% inflation scenario would be similar to a 2% interest rate in a -3% inflation (deflation) scenario, no?

-Riley
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