Since at the ZLB, the real interest rate is the negative of the inflation rate (real int rate
= nom rate — inflation rate), another suspect as to why this
recovery's been
more of a slog (though see last point below on this) is our low inflation rate.
Reducing inflammation
= lower resting heart rate, faster
recovery rate from exercise and a calmer,
more peaceful outlook on life.
For example, taking some time periods with roughly constant slope, we have (slope x 1000 for easy reading): 1900 — 34: 1000 * slope
= 1.23 / year (note CO2ref does not affect the slope) 1935 — 49: 1000 * slope
= 0.114 / year (Depression, WWII etc) 1950 — 58: 1000 * slope
= 1.67 / year (
recovery stage 1) 1959 — 75: 1000 * slope
= 2.92 / year (now things are moving) 1976 — 94: 1000 * slope
= 4.36 / year (
more and
more growth) 1995 — 2011: 1000 * slope
= 5.11 / year (China kicks in?)