Friday, February 22, 2013

negative rates or inflation?

adjusting the real value of fixed  nominal obligations requires
use of inflation
of  product prices and of course wage rates

negative or positive changes in  rates of interest
not limited by the zero line
call them in general  occasional real value realigners
could accomplish these adjustments instantaneously

in any closed market system
inflation is meaningless unless its non proportional

ie
 some nominal values move  differently then others
more or less
 including
      in  opposite directions


open systems are inter linked by forex rates
where congruent or just  similar  or  for that matter
contrary adjustments can be made