First of all, lovely lecture. I have a question. When you talk about the fisher effect, you say "inflation/inflationary expectation will, atleast in the long run, be incorparated in nominal interest rate. Does that mean companies can make money(Or rather, companies can get an "early bird discount") by giving out bonds when the inflationary expectation has not yet been incorperated in the nominal interest rate? E.g. 3% inflationary expectation vs nominal interest of 2%? So therefor borrowing money for 2% instead of 6%?
best guy so far thank you a lot a lot !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Very educational. Thank you sir!
Sir, Your videos are really helping a lot.
Thankyou :)
Thank you.
What do you think about the Fed keeping interest rates so low so long since this lecture?
Thank you
First of all, lovely lecture. I have a question. When you talk about the fisher effect, you say "inflation/inflationary expectation will, atleast in the long run, be incorparated in nominal interest rate. Does that mean companies can make money(Or rather, companies can get an "early bird discount") by giving out bonds when the inflationary expectation has not yet been incorperated in the nominal interest rate? E.g. 3% inflationary expectation vs nominal interest of 2%? So therefor borrowing money for 2% instead of 6%?
Getting Difficult and my attention spam is short.