Thursday, September 11, 2008

Currencies and Real Interest Rate

Based on the data as compiled below, it looks like EU, Australia and New Zealand are the three countries that have positive real interest rates while US and Japan are exhibiting negative interest rates:
And although I have not listed down the numbers for other major countries, it can be generally said that positive real interest rates are more of exception than norm. I thus think the outlook for AUD, NZD and, to a lesser extend, Euro are by extension positive.

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