On 5/1/22 21:16, Ian Whitchurch - ian.whitchurch at gmail.com (via tml
list) wrote:
> Remembering back a bunch of years, I think we assumed it was hovering
> around zero.
>
> Note the Third Imperium isn't a very growth oriented ... one of the
> stresses that led to the Rebellion was the idea that the Imperium
> should actually, like, help worlds develop. Which it doesn't, as that
> would need money.
>
> Ian Whitchurch
>
>
Ian,

Thanks for replying and at least lighting the way for me to stumble down.

The previous blurb I posted would seem to imply a long-term inflation
rate of zero, making nominal rates equal to real rates.

Risk-free rate would be bounded below by zero - otherwise people would
not bother with risk-free instruments and hold cash.

Adding in what you've said, I think a risk-free rate of 0.25% or 0.50%
pa would fit.  Probably the lower, as what I posted from GT:FT implies
such a risk-free rate is a convenience yield to avoid holding cash.

Alex

--